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Revisiting the Impact of Bt Corn Adoption by U.S. Farmers

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  • Fernandez-Cornejo, Jorge
  • Wechsler, Seth James
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    Abstract

    This study examines the impact of adopting Bt corn on farm profits, yields, and insecticide use. The study employs an econometric model that corrects for self-selection and simultaneity. The model is estimated using nationwide farm-level survey data for 2005. Regression analysis confirms that Bt adoption is associated with increased variable profits, yields, and seed demand. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result may be due to the fact that insect infestation levels were lower in 2005 than they were in previous years.

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    File URL: http://purl.umn.edu/141671
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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 41 (2012)
    Issue (Month): 3 (December)
    Pages:

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    Handle: RePEc:ags:arerjl:141671

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    Web page: http://www.narea.org/
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    Related research

    Keywords: genetically engineered corn; insect resistance; Bt corn; insecticide use; technology adoption; yields; Farm Management; Production Economics;

    References

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    1. Vassilis A. Hajivassiliou & Daniel L. McFadden, 1998. "The Method of Simulated Scores for the Estimation of LDV Models," Econometrica, Econometric Society, vol. 66(4), pages 863-896, July.
    2. Fernandez-Cornejo, Jorge & Li, Jiayi, 2005. "The Impacts of Adopting Genetically Engineered Crops in the USA: The Case of Bt Corn," 2005 Annual meeting, July 24-27, Providence, RI 19318, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    5. Richard Gates, 2006. "A Mata Geweke–Hajivassiliou–Keane multivariate normal simulator," Stata Journal, StataCorp LP, vol. 6(2), pages 190-213, June.
    6. David Roodman, 2009. "Estimating Fully Observed Recursive Mixed-Process Models with cmp," Working Papers 168, Center for Global Development.
    7. Geweke, John, 1989. "Bayesian Inference in Econometric Models Using Monte Carlo Integration," Econometrica, Econometric Society, vol. 57(6), pages 1317-39, November.
    8. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
    9. Ira Matuschke & Matin Qaim, 2009. "The impact of social networks on hybrid seed adoption in India," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 493-505, 09.
    10. Keane, Michael P, 1992. "A Note on Identification in the Multinomial Probit Model," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(2), pages 193-200, April.
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