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Living conditions and subjective well-being of farmers - An ordered response analysis of regional differences and changes over time

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  • Hild-Marte Bjørnsen

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    Abstract

    The liberalisation of trade with building down of tariffs and quotas, and with subsequently lower output prices, has enforced considerable structural changes in the agricultural sector. In Norway, both naturally given factors such as climate and topography, and social conditions such as a tradition for small family farms and strong governmental regulations, contribute in making this process even harder on the individual farmer. So how do the farmers respond? National farm statistics show that the amount of cultivated land stays approximately the same even though the number of farm units and agricultural employment falls annually. This implies that both farm size and productivity have increased. In this paper we utilise sample survey data on living conditions in agricultural households to examine whether we can observe changes in farmers ’experienced utility. Have contentment dropped and are there any obvious regional differences in contentment? The data consists of non-overlapping cross-sections for the years 1995 and 2002 and we make use of a standard ordered probability model in the estimations.

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    Bibliographic Info

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p95.

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    Date of creation: Aug 2005
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    Handle: RePEc:wiw:wiwrsa:ersa05p95

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    1. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 114(497), pages 641-659, 07.
    2. Rainer Winkelmann, 2005. "Subjective well-being and the family: Results from an ordered probit model with multiple random effects," Empirical Economics, Springer, Springer, vol. 30(3), pages 749-761, October.
    3. Blanchflower, David G. & Oswald, Andrew J., 2004. "Well-being over time in Britain and the USA," Journal of Public Economics, Elsevier, Elsevier, vol. 88(7-8), pages 1359-1386, July.
    4. Boes, Stefan & Winkelmann, Rainer, 2004. "Income and Happiness: New Results from Generalized Threshold and Sequential Models," IZA Discussion Papers 1175, Institute for the Study of Labor (IZA).
    5. Bruno S. Frey & Alois Stutzer, 1999. "Measuring Preferences by Subjective Well-Being," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 155(4), pages 755-778, December.
    6. Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(473), pages 465-84, July.
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