Todd
Schmit, Ph.D.
Professor,
Charles H. Dyson School of Applied Economics and Management
Faculty
Director, Cornell Agricultural Marketing Research Program
SC Johnson
College of Business
Cornell
University
Incorporating Economic Multipliers in a
Bid Adjustment Algorithm
for Public Food Procurement
Decision-Making
We present an adjusted bid price
mechanism that incorporates economic multiplier effects in public food
procurement processes. Under Input-Output model assumptions, the approach
provides a comprehensive view of the net cost to a state and allows public agencies
to make better-informed local procurement decisions. The transparent method
offers significant implications for policy debates surrounding public food
procurement and local competitiveness. The mechanism is empirically applied to
detailed food purchase data by public agencies on state bids in New York State
to highlight the extent and implications of its application relative to current
policy.
Speaker
Biography
Professor
Schmit’s research surrounds agribusiness management and domestic agricultural
economic development. Much of his research focuses on identifying strategies to
improve agribusiness performance and the consideration of agriculturally based
inter-industry linkages to enhance the efficacy of policies targeted to rural
development. Areas of expertise include local and regional food systems
performance, cooperative business management and governance, and agricultural
rural development.