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Modeling acreage decisions within the multinomial Logit framework

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  • Alain Carpentier
  • Elodie Letort

Abstract

The Multinomial Logit (MNL) framework has been used in the agricultural production economics literature to model acreage share choices, crop decisions or land use decisions. This article extends the pioneering works of Caswell and Zilberman (1985) and of Wu and Segerson (1995) by developing further the theoretical background of the MNL acreage share models. Two approaches are considered: the “cost function approach” and the “discrete choice approach”. It is then shown that MNL acreage share models can be used to define simple multi-crop econometric models with land as an allocatable fixed input. Finally several generalizations of the standard MNL acreage share model are proposed.

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Paper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 09-17.

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Date of creation: 2009
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Handle: RePEc:rae:wpaper:200917

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Keywords: acreage share; discrete choice; multicrop econometric model; multinomial Logit;

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Cited by:
  1. Haile, Mekbib G. & Kalkuhl, Matthias & von Braun, Joachim, 2013. "Short-term global crop acreage response to international food prices and implications of volatility," Discussion Papers 145308, University of Bonn, Center for Development Research (ZEF).
  2. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "Inter-and intra-annual global crop acreage response to prices and price risk," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 149695, Agricultural and Applied Economics Association.
  3. Jaeck, Melanie & Lifran, Robert, 2011. "The Economic Determinants of the On-farm Management of Rice Cultivars in the Rhone River Delta (France)," 2011 Conference, August 25-26, 2011, Nelson, New Zealand, New Zealand Agricultural and Resource Economics Society 115508, New Zealand Agricultural and Resource Economics Society.
  4. Kaminski, Jonathan & Kan, Iddo & Fleischer, Aliza, 2011. "A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach," Discussion Papers 120076, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  5. Carroll, Christine & Carter, Colin & Goodhue, Rachael & Lin, C.-Y. Cynthia & Subbarao, Krishna, 2013. "Bioeconomic Modeling of an Imported Disease in California Lettuce," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150495, Agricultural and Applied Economics Association.

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