Arbitrage pricing with information

The Arbitrage Pricing Theory is extended to a setting where investors possess information about future asset returns. A no-arbitrage pricing restriction is obtained with arbitrage conditioned on an investor's information. The pricing restriction contains unconditional factor loadings and either conditional or unconditional expected returns. Thus, tests of the theory can be based solely on time-series estimates of unconditional moments. Additional tests based on conditional expected returns are also appropriate.     

AGRICULTURAL RESOURCE MANAGEMENT

Today the land economists of yore have either gone to their reward or else been transmuted into resource economists who, with a few exceptions, spend their time in airy disputations about externalities, shadow prices and the choice of appropriate discount rates to be applied to future benefits (Campbell 1982, p. 9).     

Stability and growth in the world oilseed market

Little research has been done on the economics of oilseeds and oilseed products, in proportion to their dietary importance in the world. The author discusses the political and economic aspects of the world oilseed market, as well as the main technical characteristics of the product. He argues that soybean is the key to stability in oilseed markets, and discusses possible policy options in the light of projected increases in both production and processing of oilseeds by developing countries.     

Optimal Flex Cropping and Storage of Spring Wheat under a Progressive Income Tax

This article presents two versions of a stochastic dynamic programming model: one version is used to obtain the optimal decision rule for flex cropping of spring wheat assuming sale of grain at harvest, while the second version is used to obtain the jointly optimal decision rule for flex cropping and storage of spring wheat. The objective function for the model is the expected present value of after-tax income. The first version of the model illustrates that the flex cropping strategy that maximizes the present value of after-tax income differs from the strategy that maximizes the present value of before-tax income. The second model illustrates that production and grain-storage marketing decision rules are inseparable under a progressive income tax. That is, the optimal flex cropping strategy assuming sale of grain at harvest differs substantially from the flex cropping strategy when grain storage is permitted. L'article propose deux versions d'un modèle de programmation dynamique stochastique: I'une est utilisée pour obtenir la décision optimale d'emblaver ou non en blé de printemps en prévision de la vente du grain à la moisson, I'autre recherchant une décision optimale d'assolement du blé avec intention de stocker à la récolte. La fonction objective du modèle est la valeur actuelle attendue du revenu après taxe. La première version révéle que la stratégic d'assolement axée sur une valeur actuelle maximale après imposition, diffère de celle qui est axée sur la valeur actuelle du revenu avant impostion. Le second modèle montre que les décisions de production et de vente ou de stockage du grain sont inséparables dans un régime d'imposition progressive. C'est-à-dire que la stratégie optimale axée sur la vente à la moisson est sensiblement différente de celle qui suppose le stockage du grain à la récolte.