The name is absent

nominal price term as the dependent variable.
Therefore the impact of an increased price level
may well explain the increased standard devia-
tion from before to after order formation in
these three cases. Note, however, that the
standard deviation of the relative price terms
declined in both spring and fall. This result is
expected because the impact of inflation is re-
moved via the relative price terms. Given these
considerations, we can conclude that the use of
a relative variation measure such as the coef-
ficient of variation is appropriate.

SUMMARY AND CONCLUSIONS

We investigate the impact of a market order
established in 1970 on the level and variability
of South Carolina fresh market cucumber
prices. The major provisions of the order that
have an impact on price are price posting by
handlers and uniform USDA inspection. A
time series regression model that covers and
accounts for periods before and after formation
of the order indicates that the order did have a
positive impact on the South Carolina cucum-
ber price level.

Further analysis using the coefficient of
variation as a measure of price variability indi-
cates that order formation reduced price varia-
bility. Four variables were used to estimate
before and after price variability: (1) monthly
price, (2) the errors of the estimated before and
after regression equations, (3) within-season
price variability, and (4) within-season price
variability in relation to the prices in neighbor-
ing producing regions.

REFERENCES

Draper, N. R. and H. Smith. Applied Regression Analysis. New York: John Wiley & Sons, Inc., 1966.

Houck, J. P. “A Look at Flexibilities and Elasticities.” J. Farm Econ. 48(1966):225-32.

Johnston, J. Econometric Methods. New York: McGraw-Hill Book Company, 1972.

Sanders, Donald H., A. F. Murph, and R. J. Eng. Statistics: A Fresh Approach. New York:
McGraw-Hill Book Company, 1980.

South Carolina Crop and Livestock Reporting Service. “South Carolina Agricultural Prices and Re-
vised Indexes, 1960-1971.” AE 357, Department of Agricultural Economics and Rural Soci-
ology, Clemson University, 1972.

“South Carolina Cash Receipts from Farm Marketings.” AE 409, Department of Agricul-
tural Economics and Rural Sociology, Clemson University, 1979.

South Carolina Cucumber Board. “Marketing Order No. 3 for South Carolina Fresh Market Cucum-
bers.” Burton, SouthCarolina, 1975.

Snedecor, George W. and William G. Cochran. Statistical Methods. Ames, Iowa: The Iowa State
University Press, 1967.

U.S. Department of Agriculture. “Vegetables: Fresh Market.” Various issues. Washington, D.C.

U.S. Department of Commerce. “Survey of Current Business.” Various issues. Washington, D.C.

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