The Role Of Farm Size And Resource Constraints In The Choice Between Risky Technologies
This paper investigates the relationship between farm size and technology adoption by applying a model recently developed by Just and Zilberman to the choices of a sample of southwestern soybean farmers. The adoption of double cropping soybeans with wheat is evaluated with an expanded model which includes availability of specialized equipment and human capital. It is found that the empirical farm size-technology adoption relationship is consistent with risk aversion and a high covariance of returns between the old and new technologies. Accounting for human and physical capital differences across farms improves the power of the hypothesis tests.
Volume (Year): 12 (1987)
Issue (Month): 02 (December)
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- Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-328, July.
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