The Role of Small Farms in Structural Change
AbstractThis paper explains regionally differentiated patterns of structural change based on a theoretical framework dealing with strategic interaction of farms on the land market. The main research question focuses on the causes of regionally persistent structures. An empirical Markov chain model is defined for the West German agricultural sector. Thereby it is possible to explain the probabilities of farm growth, decline or exit in terms of the current and former regional farm size structure. Further, the impact of variables describing the regional farm structure, thereby indicating market power of the large, the potential of high competition for land within a region and possibly high rents of the status quo in combination with sunk costs, is quantified. The results confirm the relevance of strategic interaction as a crucial determinant of regionally different structural change and persistent regional differences in the farm size structure over time.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 111th Seminar, June 26-27, 2009, Canterbury, UK with number 52853.
Date of creation: 20 Aug 2009
Date of revision:
structural change; strategic competition; land market; Markov chain; Land Economics/Use;
Other versions of this item:
- Huettel, Silke & Margarian, Anne, 2009. "The Role of Small Farms in Structural Change," Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers 59519, Humboldt University Berlin, Department of Agricultural Economics.
- NEP-ALL-2009-09-19 (All new papers)
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.:
- Kellermann, Konrad & Sahrbacher, Christoph & Balmann, Alfons, 2008. "Land Markets In Agent Based Models Of Structural Change," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6647, European Association of Agricultural Economists.
- Ratinger, Tomas & Foltyn, Ivan & Jelinek, Ladislav & Kristkova, Zuzana, 2012. "Distributional effects and structural change induced by various CAP Pillar 1 proposals; the case of the Czech Republic," 126th Seminar, June 27-29, 2012, Capri, Italy 126221, European Association of Agricultural Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.