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Explaining Changes in the Distribution of Annual Dairy Farm Income over Time

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Author Info
Hung-Hao, Chang
Boisvert, Richard
Tauer, Loren

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Abstract

This paper identifies factors affecting the distribution of farm income among dairy producers over time. Using data from participants in Cornell's Dairy Farm Record Program, we decompose differences of farm income distributions into those due to: differences in means of observable farm characteristics, differential marginal effects of characteristics and unobserved random error. The distribution of farm income is affected by factors reflecting the operators' experience and investment in human capital and indicators of management efficiency and level of capital investment. The marked changes in marginal contributions of these factors explain most of the total change in the distribution of income.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6544.

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Date of creation: 2008
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Handle: RePEc:ags:aaea08:6544

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Related research
Keywords: Dairy farm income distribution; Decomposition; Farm Management; Livestock Production/Industries;

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August. [Downloadable!] (restricted)
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  2. Mishra, Ashok K. & El-Osta, Hisham S. & Morehart, Mitchell J. & Johnson, James D. & Hopkins, Jeffrey W., 2002. "Income, Wealth, And The Economic Well-Being Of Farm Households," Agricultural Economics Reports 33967, United States Department of Agriculture, Economic Research Service. [Downloadable!]
  3. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June. [Downloadable!] (restricted)
  4. Reddy, Wenkateshwar K. & Findeis, Jill L., 1987. "Decomposition Of Income Distribution Among Farm Families," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 16(2), October. [Downloadable!]
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This page was last updated on 2009-12-11.

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