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Simultaneous estimation of work choices and the level of farm activity using panel data

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  • Avner Ahituv
  • Ayal Kimhi

Abstract

We analyse the simultaneous determination and evolution over time of work choices and the level of farm activity, using a panel of Israeli farm households. We estimate jointly a multinomial choice model of work activity and an endogenous switching regression of farm size, accounting for unobserved heterogeneity and correcting for simultaneity bias. Our results imply that some family farms tend to expand over time and specialise in farming, whereas other farm households downsize their farming operation and increase their engagement in the off-farm labour market. Therefore, the size distribution of farms is converging towards a bimodal distribution. Copyright 2006, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 33 (2006)
Issue (Month): 1 (March)
Pages: 49-71

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Handle: RePEc:oup:erevae:v:33:y:2006:i:1:p:49-71

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Cited by:
  1. Jan Fałkowski & Maciej Jakubowski & Paweł Strawiński, 2011. "Returns from income strategies in rural Poland," Working Papers 2011-05, Faculty of Economic Sciences, University of Warsaw.
  2. Kimhi, Ayal, 2008. "Has Debt Restructuring Facilitatead Structural Transformation on Israeli Family Farms?," Discussion Papers 37943, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  3. Bjornsen, Hild-Marte & Mishra, Ashok K., 2012. "Off-farm Employment and Farming Efficiency in Modern Agriculture: A Dynamic Panel Analysis," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124742, Agricultural and Applied Economics Association.
  4. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114759, European Association of Agricultural Economists.
  5. Yuriy Pylypchuk & Julie Hudson, 2009. "Immigrants and the use of preventive care in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(7), pages 783-806.
  6. Biørn, Erik & Bjørnsen, Hild-Marte, 2013. "What Motivates Farm Couples to Seek Off-farm Labour? A Logit Analysis of Job Transitions," Memorandum 09/2013, Oslo University, Department of Economics.
  7. Wang, Xiaobing, 2007. "Labor market behavior of Chinese rural households during transition," Studies on the Agricultural and Food Sector in Central and Eastern Europe, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO), volume 42, number 92321.
  8. Fałkowski, Jan & Jakubowski, Maciej & Strawiński, Paweł, 2013. "Returns from Income Strategies in Rural Poland," Working Papers 157916, Factor Markets, Centre for European Policy Studies.
  9. Dolev, Yuval & Kimhi, Ayal, 2008. "Does Farm Size Really Converge? The Role of Unobserved Farm Efficiency," Discussion Papers 45778, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  10. Bojnec, Stefan & Ferto, Imre, 2011. "Impact of Off-farm Income on Farm Efficiency in Slovenia," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114258, European Association of Agricultural Economists.
  11. Dolev, Yuval & Kimhi, Ayal, 2006. "Survival And Growth Of Family Farms In Israel: 1971-1995," Discussion Papers 7146, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  12. Dolev, Yuval & Kimhi, Ayal, 2010. "Do family farms really converge to a uniform size? The role of unobserved farm efficiency," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), March.
  13. Kimhi, Ayal, 2009. "Heterogeneity, Specialization and Social Cohesion in Israeli Moshav Cooperatives," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1).
  14. Hoveid, Oyvind & Raknerud, A., 2008. "Dynamics of income, wealth and capital in Norwegian farm household accounts: A state-space model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44461, European Association of Agricultural Economists.
  15. Lien, Gudbrand D. & Kumbhakar, Subal C. & Hardaker, J. Brian, 2008. "Determinants Of Part-Time Farming And Its Effect On Farm Productivity And Efficiency," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6701, European Association of Agricultural Economists.
  16. Andreas Kontoleon & Pauline Grosjean, 2007. "How Sustainable are Sustainable Development Programs? The Case of the Sloping Land Conversion Program in China," Environmental Economy and Policy Research Working Papers 26.2007, University of Cambridge, Department of Land Economics, revised 2007.
  17. Størdal, Ståle & Lien, Gudbrand & Baardsen, Sjur, 2008. "Analyzing determinants of forest owners' decision-making using a sample selection framework," Journal of Forest Economics, Elsevier, vol. 14(3), pages 159-176, June.

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