A composed-error model for estimating pest-damage functions and the impact of the western corn rootworm soybean variant in Illinois

Paul D. Mitchell, Michael E. Gray, Kevin L. Steffey

Research output: Contribution to journalArticle

Abstract

We describe a composed-error model for estimating pest-damage functions. The composed-error model, originally developed to account for statistical noise when estimating technical efficiency, removes the effect of experimental errors when estimating the variance of yield loss from pest damage. As a result, the estimated variance of yield loss is often less than for a conventional model, which has economic implications when the analysis incorporates risk aversion. We find that, depending on the level of risk aversion, the western corn rootworm soybean variant reduces farmer certainty-equivalent returns 16-26% more with a conventional model than with the composed-error model.

Original languageEnglish (US)
Pages (from-to)332-344
Number of pages13
JournalAmerican Journal of Agricultural Economics
Volume86
Issue number2
DOIs
StatePublished - May 1 2004

Keywords

  • Diabrotica spp.
  • Hierarchical model
  • Root rating
  • Rotation resistance

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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