Imputing Input Characteristic Values from Optimal Commercial Breed or Variety Choice Decisions

Abstract

Previous Input Characteristics Models (ICMs) are modified and extended to allow the economic values of individual genetic characteristics to be imputed, even when those characteristics are acquired in largely inseparable bundles such as in the animal breed or plant variety decision of commercial producers. Through analysis of the commercial breed selection decision for a representative beef producer, the extended ICM is shown to generally be more flexible, with less restrictive data requirements for estimation, than prior ICMs. Additional modifications of the extended ICM method of analysis are suggested to further enhance and broaden its applicability.

Wheat Variety Selection to Maximize Returns and Minimize Risk: An Application of Portfolio Theory

“…These studies used the neoclassical input characteristic model developed by Ladd and Martin (1976), and extended by Melton, Colette, and Willham (1994), to derive the demand for each wheat variety, given varietal characteristics such as agronomic factors, end-use quality, and yield stability. The model assumes that an individual wheat producer maximizes expected profits, E(p), given a normal wheat output distribution Q w ; N(E(Q w ), s 2 ), where Q w is wheat output in bushels, E(Q w ) is the mean, and s 2 the variance.…”

A household hedonic model of rice traits: economic values from farmers in West Africa

“…Input characteristic models have identified economically valuable production traits in developed country agriculture but have not been explored for use in technology assessment in less developed countries. Application of neoclassical ICMs, largely based upon disaggregating breed or variety price into derived implicit values of embodied genetic traits, have been limited by unobservable data (Melton et al, 1994). Application of neoclassical ICMs, largely based upon disaggregating breed or variety price into derived implicit values of embodied genetic traits, have been limited by unobservable data (Melton et al, 1994).…”

Economic evaluation for conservation of farm animal genetic resources

“…In addition, Melton et al (1994) proposed an input characteristics model integrating the two approaches. This model operates at two stages.…”

“…In general, the methods describe here mobilize econometric or mathematical programming approaches to analyse the data. In addition, Melton et al (1994) proposed an input characteristics model integrating the two approaches. This model operates at two stages.…”