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Effect of Water Price on the Multicrop Production Decision: Appling Fixed Allocatable Input Model in Georgia

Author

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  • Yu, Yingzhuo
  • Mullen, Jeffrey D.
  • Hoogenboom, Gerrit

Abstract

This study applies the fixed allocatable input model to test the effect of water price on the multiple production decision in Georgia, U.S. The limited dependent variable models are applied and intensive data are analyzed in this study to estimate the decision for crop choice, land allocation, product supply, and water demand functions at crop-level. In order to investigate the effect of water price on crop-level demand, the total water price effect on farm water demand is decomposed the intensive margin and extensive margin.

Suggested Citation

  • Yu, Yingzhuo & Mullen, Jeffrey D. & Hoogenboom, Gerrit, 2006. "Effect of Water Price on the Multicrop Production Decision: Appling Fixed Allocatable Input Model in Georgia," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35479, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeaso:35479
    DOI: 10.22004/ag.econ.35479
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    3. Michael R. Moore & Noel R. Gollehon & Marc B. Carey, 1994. "Alternative models of input allocation in multicrop systems: Irrigation water in the Central Plains, United States," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 143-158, December.
    4. McDonald, John F & Moffitt, Robert A, 1980. "The Uses of Tobit Analysis," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 318-321, May.
    5. Moore, Michael R. & Gollehon, Noel R. & Carey, Marc B., 1994. "Alternative models of input allocation in multicrop systems: irrigation water in the central plains, United States," Agricultural Economics, Blackwell, vol. 11(2-3), pages 143-158, December.
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