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Communication Dans Un Congrès Année : 2017

Dealing with corner solution in multi-crop micro-econometric models: an endogenous regime switching approach with regime fixed cost

Résumé

We propose an endogenous regime switching model specifically designed for modelling acreage choices with corner solutions featuring regime fixed costs. Contrary to models based on censored regression systems, this model is fully coherent from an economic point of view, by construction. To illustrate its empirical tractability, we estimate a random parameter version of this model for a panel dataset of French arable crop producers. Our results show that the model fits well the data, the regime fixed costs matter, and that the decision to produce a crop or not plays a major role in the acreage responses to economic incentives.
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Dates et versions

hal-01605030 , version 1 (02-10-2017)

Identifiants

  • HAL Id : hal-01605030 , version 1
  • PRODINRA : 398864

Citer

Obafemi Philippe Koutchade, Alain Carpentier, Fabienne Femenia. Dealing with corner solution in multi-crop micro-econometric models: an endogenous regime switching approach with regime fixed cost. 2017 AAEA Annual meeting, European Association of Agricultural Economists (EAAE). INT., Jul 2017, chicago, United States. ⟨hal-01605030⟩

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