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Zhao, Jianmei; Zhang, Jun. |
This article addresses the separability issue in the context of Chinese rural households. Deviating from previous research, our test on separability is embedded in the capital market imperfections and from the perspective of farm living consumption and their production inputs. Our theoretical framework incorporates the credit constraint and predicts both separability and non-separability behavior from rural households. Empirical estimation presents the evidence of non-separability behavior for credit constrained farm families, while independent decisions on farm living consumption and their production inputs exist among unconstrained households. Our overall results reject the separability for financially constraint farm households in China. |
Tipo: Presentation |
Palavras-chave: Credit constraint; Non-separable behavior; Switching regression; Agricultural Finance; Consumer/Household Economics; Q12; Q14; O18. |
Ano: 2012 |
URL: http://purl.umn.edu/123950 |
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Odening, Martin; Musshoff, Oliver; Utesch, Volker. |
The objective of this paper is to explore the potential of the real options approach for analyzing farmers’ choice to switch from conventional to organic farming. Understanding the determinants of this decision is relevant in particular for agricultural policy makers when predicting the response of farmers to support programs. After a brief review of the existing literature on barriers to the adoption of organic farming a theoretical model is presented that allows one to incorporate two main features of the adoption decision, namely irreversibility and uncertainty of the returns. The real options model quantifies investment multiples that trigger the adoption of organic farming. Compared with neoclassical models it suggests an inertia of the respective... |
Tipo: Journal Article |
Palavras-chave: Organic farming; Real options; Switching regression; Hysteresis; Farm Management. |
Ano: 2004 |
URL: http://purl.umn.edu/97451 |
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