AGEC 317 Economic Analysis for Agribusiness and Management

About Your Instructor Dr. Yu Yvette Zhang Office: 340 AGLS Phone: 979 -845 -2136 E-mail: yzhang@tamu. edu Office hours: MWF 3 to 4: 30 p. m. or by appointment

About Your Instructor, (con’t) Ph. D. , Economics, Texas A&M University, 2010 Ph. D. , Biology, Duke University, 2004 B. S. , Biology, Peking University, 1998 Research areas: Applied Microeconomics, Experimental Economics, Industrial Organization, Applied Econometrics, Ecology Webpage: http: //agecon 2. tamu. edu/people/faculty/zhang-yvette Course Website: http: //agecon 2. tamu. edu/people/faculty/zhang-yvette/AGEC 317. htm Or e. Learning

TA TA: Christopher Rutland Office: TBD Phone: 979 -777 -5846 Office Hours: from 8: 30 -10: 30 am E-mail: CTRutland@ag. tamu. edu

Prerequisites for AGEC 317 Ø Ø AGEC 217 (Fundamental Agricultural economic analysis) MATH 142 (Business Mathematics) II ( or equivalent STAT 303 (Statistical Methods) or equivalent ECON 323 (Microeconomic theory) or equivalent

Textbooks: Ø Ø Managerial Economics, Twelfth edition by Mark Hirschey Introductory Econometrics: A Modern Approach, 4 e, Jeffery Wooldridge, 2008. (Recommended)

AGEC 317 Goals: Better understand managerial and economic issues in agribusiness management Agribusiness is the “sum of all operations involved in the manufacturing and distribution of farm supplies, production on the farm, and the storage, processing, and distribution of farm commodities and items made from them. ” Davis & Goldberg, 1957, A Concept of Agribusiness. Ø * Production (farms, ranches, etc. ) * Input (seed, chemicals, credit, etc. ) * Processing (milk, grain, meat, etc. ) * Manufacturing (ice cream, cereals, etc. ) * Transporters, sellers, etc. (restaurants, supermarkets)

Provide exposure in using formal quantitative analysis to solve economic problems Ø Review of Key Algebraic Concepts/Calculus Ø Demand, Supply and Elasticity Analysis Ø Risk Analysis Ø Regression (Estimation and Inference) Ø Forecasting Ø Optimization via the use of Calculus Ø Linear Programming

Specific Expectations Ø Ø Understand demand supply relationships Solve optimization problems (either calculus-based or linear programming) Ø Conduct regression analysis and interpret results Ø Conduct tests of hypotheses within a regression analysis Ø Make projections or forecasts Ø Understand decision-making under uncertainty Ø Ability to communicate quantitative results to decisionmakers

Evaluation of Student Performance n n n n Bonus Questions (In class, open book/notes): 5 % Homework Assignments: 12% Class Project (5 students/group): 15% Exam 1: 35 % Exam 2: 35 % Final Exam (Cumulative) Optional Total 103% Point Total Letter Grade ≥ 90 A 80 – 89 B 70 – 79 C 60 -69 D <60 F

Important Dates: Exam 1: Oct 12, 2011 Class Project Due: Nov 21, 2011 Exam 2: Dec 2, 2011 Final Exam (Optional): Dec 13, Tuesday, 10: 30 am -12: 30 pm

Steps Toward Success Ø Have a positive attitude!!! Ø Come to lectures, class participation Ø Review lecture notes Ø Speak up in class if you are confused or require clarification on concepts Ø Work diligently on the class project Ø Check material on my webpage

Can We Study in a Group? Ø Yes!!! Studying in a group is encouraged. Ø For the class project, work in a team of five to six individuals. Ø But. . . Ø You take individual responsibility for learning the material Ø Make sure YOU can do the assignments Ø The assignments are very similar to in-class test questions