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Slippage effects of the conservation reserve program: reply
- Wu, J.J.
- American journal of agricultural economics 2005 v.87 no.1 pp. 251-254
- agricultural programs and projects, land retirement, Conservation Reserve Program, compliance, dropouts, economic analysis, policy analysis, econometric models, data analysis, correlation, estimation, validity, program evaluation, agricultural statistics, United States
- Given that the Conservation Reserve Program (CRP) costs taxpayers $2 billion per year and remains the largest conservation program in U.S. history, Roberts and Bucholtz are to be commended for revisiting the slippage issue. However, their central point that regional variation in CRP acreage is endogenous is inconsistent with CRP implementation rules and data. Thus, it is not surprising that the null hypothesis of exogeneity cannot be rejected by statistical tests.