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Simultaneity Of Technology Adoption And Productivity

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  • Zepeda, Lydia

Abstract

A simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is subject to simultaneity bias. Since the system of equations contains both continuous and discrete endogenous variables, generalized probit is used. The findings indicate that the biased single-equation estimates tend to exaggerate relationships with explanatory variables, and in some cases, lead to different implications. This emphasizes the need to use the consistent and asymptotically more efficient generalized probit results to account for simultaneity.

Suggested Citation

  • Zepeda, Lydia, 1994. "Simultaneity Of Technology Adoption And Productivity," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 19(1), pages 1-12, July.
    • Handle: RePEc:ags:jlaare:31232
    DOI: 10.22004/ag.econ.31232
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    1. Nyaupane, Narayan P. & Gillespie, Jeffrey M. & Paudel, Krishna P., 2012. "Economic Impacts of Adoption of Best Management Practices by Crawfish Producers: The Role of the Environmental Quality Incentives Program," Agricultural and Resource Economics Review, Cambridge University Press, vol. 41(2), pages 247-259, August.
    2. “Ban†Banerjee, Swagata & Martin, Steven W. & Roberts, Roland K. & Larkin, Sherry L. & Larson, James A. & Paxton, Kenneth W. & English, Burton C. & Marra, Michele C. & Reeves, Jeanne M., 2008. "A Binary Logit Estimation of Factors Affecting Adoption of GPS Guidance Systems by Cotton Producers," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 345-355, April.
    3. Benjamin M. Gramig & Christopher A. Wolf & Frank Lupi, 2010. "Understanding Adoption of Livestock Health Management Practices: The Case of Bovine Leukosis Virus," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 343-360, September.
    4. Cuong Le Van & Nguyen To The, 2019. "Farmers’ adoption of organic production," Asia-Pacific Journal of Regional Science, Springer, vol. 3(1), pages 33-59, February.
    5. Mukasa Adamon N., 2016. "Working Paper 233 - Technology Adoption and Risk Exposure among Smallholder Farmers: Panel Data Evidence from Tanzania and Uganda," Working Paper Series 2328, African Development Bank.
    6. Gillespie, Jeffrey & Qushim, Berdikul & Nyaupane, Narayan & McMillin, Kenneth, 2015. "Breeding Technologies in U.S. Meat Goat Production: Who Are the Adopters and How Does Adoption Impact Productivity?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-25, December.
    7. Kpade, Patrice Cokou & Mensah, Edouard Romeo, 2013. "Facteurs d’adoption de la lutte étagée ciblée au Nord-Bénin," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 338(November-).
    8. Liu, Wei & Shao, Xuefeng & De Sisto, Marco & Li, Wen Helena, 2021. "A new approach for addressing endogeneity issues in the relationship between corporate social responsibility and corporate financial performance," Finance Research Letters, Elsevier, vol. 39(C).
    9. Mintewab Bezabih, 2008. "Agrobiodiversity conservation under an imperfect seed system:the role of Community Seed Banking schemes," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 77-87, January.
    10. O'Callaghan, Daniel & Hennessy, Thia & Breen, James, 2016. "Factors Associated with Extension Programme Participation: The case of discussion groups for Irish cattle farmers," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236329, Agricultural Economics Society.
    11. Wakeyo, Mekonnen B. & Gardebroek, Cornelis, 2013. "Does water harvesting induce fertilizer use among smallholders? Evidence from Ethiopia," Agricultural Systems, Elsevier, vol. 114(C), pages 54-63.
    12. Barham, Bradford L. & Jackson-Smith, Douglas & Moon, Sunung, 2002. "The Dynamics Of Agricultural Biotechnology Adoption: Lessons From Rbst Use In Wisconsin, 1994-2001," 2002 Annual meeting, July 28-31, Long Beach, CA 19627, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. repec:ags:afjare:225658 is not listed on IDEAS
    14. Bezabih, Mintewab, 2005. "Biodiversity Conservation under an Imperfect Seed System: the Role of Community Seed Banking Scheme," Working Papers in Economics 185, University of Gothenburg, Department of Economics.
    15. Wubeneh, Nega Gebreselassie & Sanders, J.H., 2006. "Farm-level adoption of sorghum technologies in Tigray, Ethiopia," Agricultural Systems, Elsevier, vol. 91(1-2), pages 122-134, November.

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    Productivity Analysis;

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