Document Type

Thesis - University Access Only

Award Date

2011

Degree Name

Master of Science (MS)

Department / School

Economics

Abstract

This study uses a Vector Autoregressive model to analyze the dynamics relationship between the marketing margins in bioethanol, the interest rate, and corn acreage in South Dakota. It further assesses not only the acreage impulse functions but also the causalities among the three variables. It finally helps to build up a monthly forecasting model. Within the developed framework, this study found that an increase(decrease) of 1% in marketing margins shocks engender a decrease(increase) of 49,000 acres, while an increase (decrease) of 1% in interest rate engender only 27,000 acres of corn in South Dakota. Furthermore, the study confirms that both the marketing margins and interest rate negatively impact corn acreage, they also granger cause corn acreage.

Library of Congress Subject Headings

Alcohol as fuel -- South Dakota -- Marketing

Corn -- Utilization -- South Dakota

Multivariate analysis

Time-series analysis

Interest rates

Format

application/pdf

Number of Pages

85

Publisher

South Dakota State University

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