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Aggregated Choice Data And Logit Models: Application To Environmental Benign Practices Of Conservation Tillage By Farmers In The State Of Iowa

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  • KURKALOVA, Lyubov A.
  • WADE, Tara R.

Abstract

The many applications of soil survey and GIS based data to agricultural development and agri-environmental research necessitates the development of econometric approaches that allows researchers to combine this fine scale data with larger scale—aggregated—dependent variable choice data while minimizing the loss of information caused by the aggregation process. The study presents an intuitive, new approach to estimation of a logit model with group–average choice data that are subject to a measurement error. We illustrate the approach in a Monte Carlo analysis and in an application to a dataset on farmer choice of tillage.

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Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 13 (2013)
Issue (Month): 2 ()
Pages: 119-128

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Handle: RePEc:eaa:aeinde:v:13:y:2013:i:2_9

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Related research

Keywords: logit; aggregated choice data; conservation tillage.;

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References

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  1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
  2. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
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  4. Douglas J. Miller & Andrew J. Plantinga, 1999. "Modeling Land Use Decisions with Aggregate Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 180-194.
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  6. JunJie Wu & Bruce A. Babcock, 1998. "The Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 494-511.
  7. Claassen, Roger & Cattaneo, Andrea & Johansson, Robert, 2008. "Cost-effective design of agri-environmental payment programs: U.S. experience in theory and practice," Ecological Economics, Elsevier, vol. 65(4), pages 737-752, May.
  8. Lubowski, Ruben & Plantinga, Andrew & Stavins, Robert, 2005. "Land-Use Change and Carbon Sinks: Econometric Estimation of the Carbon Sequestration Supply Function," Working Paper Series rwp05-001, Harvard University, John F. Kennedy School of Government.
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  10. Kling, Catherine L. & Kurkalova, Lyubov A. & Zhao, Jinhua, 2006. "Green Subsidies in Agriculture: Estimating the Adoption Costs of Conservation Tillage from Observed Behavior," Staff General Research Papers 12344, Iowa State University, Department of Economics.
  11. Lori Lynch & Sabrina J. Lovell, 2003. "Combining Spatial and Survey Data to Explain Participation in Agricultural Land reservation Programs," Land Economics, University of Wisconsin Press, vol. 79(2), pages 259-276.
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  15. Wu, JunJie & Babcock, Bruce A., 1998. "Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications (The)," Staff General Research Papers 979, Iowa State University, Department of Economics.
  16. Cooper, Joseph C., 1997. "Combining Actual And Contingent Behavior Data To Model Farmer Adoption Of Water Quality Protection Practices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(01), July.
  17. Tommi Orpana & Jouko Lampinen, 2003. "Building Spatial Choice Models from Aggregate Data," Journal of Regional Science, Wiley Blackwell, vol. 43(2), pages 319-348.
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  21. Muller, Daniel & Zeller, Manfred, 2002. "Land use dynamics in the central highlands of Vietnam: a spatial model combining village survey data with satellite imagery interpretation," Agricultural Economics, Blackwell, vol. 27(3), pages 333-354, November.
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