The Replacement Problem


Book Description

We construct a vintage capital model of economic growth in which the decision to replace old technologies with new ones is modeled explicitly. Depreciation in this environment is an economic, not a physical concept. We describe the balanced growth paths and the transitional dynamics of this economy. We illustrate the importance of vintage capital by analyzing the response of the economy to fiscal policies designed to stimulate investment in new technologies. A revised version of this paper is published in the Journal of Monetary Economics, v. 40, no. 3(December 1997):457-499.







Large Dairy Herd Management


Book Description




Optimum Dairy Cow Replacement Policies to Maximize Income Over Feed Cost


Book Description

Simulation of a dairy herd over a period of 15 years was used to examine replacement strategies among six operationally practical systems of culling cows which whould maximize income over feed costs. The strategies or criteria used to remove the lower ranking cows to a relatively constant herd size were: (1) Mature Equivalent (M.E.) milk production, (2) M.E. gross milk income, (3) actual milk production, (4) actual gross income, (5) income over feed cost, and (6) present value of expected gross income of cow and her subsequent replacements. Two each of prices of milk, fat differential, feed, and operational costs totaled 2 4 x 6 x 2 replications per trial or 192 replications. The following were treated as stochastic variables: (a) variation in milk production and milkfat percentage between cows and between lactations of the same cow, (b) chance of a calf being a heifer or bull, (c) chance of involuntary death or removal of cows and youngstock, and (d) chance of month of the year of involuntary removals. The mean and variance of the base herd approximated the average Michigan DHIA Holstein population in 1966. The sire value, approximating the best bulls used in A.I. was identical for any given year through all strategies and replications, but improved over time at the rate of 130 1b milk per year. Culls or cows removed because of low in each respective strategy were removed at the most profitable point to cull in their respective lactations by equating the milk income of the marginal month with the sun of the month's feed costs and monthly operational charges. Practical use of this simple method of determining when to cull cows within a lactation was demonstrated. A complete factorial design to analyze the generates data showed no significant differences between strategies under alternative combinations of prices in average income including salvage over feed cost per cow discounted to the present. This income was affected by the level of milk price (P




Handbook of Operations Research in Agriculture and the Agri-Food Industry


Book Description

The scope of this book is Operations Research methods in Agriculture and a thorough discussion of derived applications in the Agri-food industry. The book summarizes current research and practice in this area and illustrates the development of useful approaches to deal with actual problems arising in the agriculture sector and the agri-food industry. This book is intended to collect in one volume high quality chapters on Methods and Applications in Agriculture and Agri-food industry considering both theoretical issues and application results. Methods applied to problems in agriculture and the agri-food industry include, but are not restricted to, the following themes: Dynamic programming Multi-criteria decision methods Markov decision processes Linear programming Stochastic programming Parameter estimation and knowledge acquisition Learning from data Simulation Descriptive and normative decision tree techniques, including: agent modelling and simulation, and state of the art surveys Each chapter includes some standard and traditional methodology but also some recent research advances. All the applications presented in the chapters have been inspired and motivated by the demands from the agriculture and food production areas.













Project Report


Book Description




The Economics of Animal Health and Production


Book Description

The efficient functioning of the livestock sector, encompassing all facets of input supply, production, processing and marketing, is critical for food security and safety. This book draws on both extensive literature and experience in animal health economics and livestock issues in Europe, Asia, Africa and Latin America. It provides comprehensive coverage of the history of livestock and animal health economics, theory and tools for the economics of animal health and production, a review of the application of economics to animal diseases and health problems, and worldwide examples of economic analysis and policy making.