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Pré-Publication, Document De Travail Année : 2023

Accounting for Latent Cropping Management Practices Choices in Crop Production Models: a Random Parameter Hidden Markov Model approach

Résumé

In this article, we account for cropping management practices (CMPs) in economists' production functions to evaluate pesticide uses responsiveness to price changes in a context of heterogeneous technology. CMPs being latent in most economists' datasets and CMP changes entailing adjustment costs, we consider a hidden Markov model to describe the dynamics of farmer's CMP choice. We also account for farmers' unobserved heterogeneity by considering a random parameter model for our production function. An illustration on French winter wheat producers of La Marne area uncovers very high-yielding, high-yielding and low-input CMPs. The characteristics of the low-input CMPs we uncover are very close to those tested by agronomists in the area covered by our data. We also show that input uses differences between low-input and more conventional CMPs are too small for taxes on chemical inputs to imply large relative profitability effects and thus to encourage farmers to adopt less intensive practices.
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Dates et versions

hal-04157564 , version 1 (10-07-2023)

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  • HAL Id : hal-04157564 , version 1

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Esther Devilliers, Obafemi Philippe Koutchade, A. Carpentier. Accounting for Latent Cropping Management Practices Choices in Crop Production Models: a Random Parameter Hidden Markov Model approach. 2023. ⟨hal-04157564⟩
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