In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use model for soybeans. This model allows for a level shift in the relationship between ending-stocks-to-use and price depending on the historical time period specified by the modeler. You estimated the following regression equation: Price = 5.23 +7.77( -) - 1.62A +7.45B +4.93C + 3.00D

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use model
for soybeans. This model allows for a level shift in the relationship between ending-stocks-to-use
and price depending on the historical time period specified by the modeler. You estimated the
following regression equation:
Price = 5.23 + 7.77(,
(Stocks-to-Use) -1.62A+ 7.45B + 4.93C + 3.00D
where A, B, C, and D are indicator variables for the four sub-periods identified by Irwin and Good
and labelled on the graph below:
US Soybean Ending Stocks to Use vs Price, 1990/91-2020/21
15.00
13.00
Strong
11.00
Moderate
9.00
Weak
7.00
Base
5.00
Asian
Crisis
3.00
0%
5%
10%
15%
20%
25%
Source: USDA WASDE
Ending Stocks to Use Ratio
Match the letter to the named subperiod on the graph.
A
[ Choose ]
[ Choose ]
[ Choose ]
D
[ Choose ]
>
>
Price (S/bu.)
Transcribed Image Text:In Assignment 8, you estimated an updated version of Irwin and Good's ending-stocks-to-use model for soybeans. This model allows for a level shift in the relationship between ending-stocks-to-use and price depending on the historical time period specified by the modeler. You estimated the following regression equation: Price = 5.23 + 7.77(, (Stocks-to-Use) -1.62A+ 7.45B + 4.93C + 3.00D where A, B, C, and D are indicator variables for the four sub-periods identified by Irwin and Good and labelled on the graph below: US Soybean Ending Stocks to Use vs Price, 1990/91-2020/21 15.00 13.00 Strong 11.00 Moderate 9.00 Weak 7.00 Base 5.00 Asian Crisis 3.00 0% 5% 10% 15% 20% 25% Source: USDA WASDE Ending Stocks to Use Ratio Match the letter to the named subperiod on the graph. A [ Choose ] [ Choose ] [ Choose ] D [ Choose ] > > Price (S/bu.)
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