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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.

Suggested Citation

  • Alain Carpentier & Elodie Letort, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers SMART 09-17, INRAE UMR SMART.
    • Handle: RePEc:rae:wpaper:200917
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    Cited by:

    1. 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. 149695, Agricultural and Applied Economics Association.
    2. Kan, Iddo & Kimhi, Ayal & Kaminski, Jonathan, 2014. "The impact of climate change on agriculture and food prices: combining a micro land use model and a market equilibrium model," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 183024, European Association of Agricultural Economists.
    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 115508, New Zealand Agricultural and Resource Economics Society.
    4. 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).
    5. Jonathan Kaminski & Iddo Kan & Aliza Fleischer, 2013. "A Structural Land-Use Analysis of Agricultural Adaptation to Climate Change: A Proactive Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 70-93.
    6. Carroll, Christine & Carter, Colin A. & Goodhue, Rachael E. & 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. 150495, Agricultural and Applied Economics Association.
    7. Mekbib G. Haile & Matthias Kalkuhl & Joachim Braun, 2014. "Inter- and intra-seasonal crop acreage response to international food prices and implications of volatility," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 693-710, November.
    8. Haile, Mekbib G. & Kalkuhl, Matthias & Braun, Joachim von, 2013. "How does food supply respond to high and volatile international food prices? An empirical evaluation of inter- and intra- seasonal global crop acreage response," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161472, African Association of Agricultural Economists (AAAE).

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    More about this item

    Keywords

    acreage share; discrete choice; multicrop econometric model; multinomial Logit;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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