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A Decomposed Negative Binomial Model of Structural Change: A Theoretical and Empirical Application to U.S. Agriculture

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  • C. S. Kim
  • G. Schluter
  • G. Schaible
  • A. Mishra
  • C. Hallahan

Abstract

We developed a single‐equation decomposed negative binomial regression model (NBRM) of the U.S. farm sector to simultaneously evaluate structural changes in the U.S. agricultural sector and the strength of several economic forces that influenced the changes in farm structure during the 1960–96 period. We found all these forces reinforced economic incentives to increase the size and decrease the number of small farms. Only agricultural programs and machinery prices countered these forces. Nous avons élaboré un modèle de régression binomiale négative (NBRM) décomposéàéquation unique pour le secteur agricole des États‐Unis afin d'évaluer simultanément les changements structurels de ce secteur ainsi que la puissance de plusieurs forces économiques qui ont influencé les changements de structure des exploitations agricoles au cours de la période 1960–96. Nous avons conclu que toutes ces forces ont renforcé les stimulants économiques en faveur d'une augmentation de la taille des exploitations et d'une diminution du nombre de petites exploitations. Seuls les programmes agricoles et le prix de la machinerie ont contrecarré ces forces.

Suggested Citation

  • C. S. Kim & G. Schluter & G. Schaible & A. Mishra & C. Hallahan, 2005. "A Decomposed Negative Binomial Model of Structural Change: A Theoretical and Empirical Application to U.S. Agriculture," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(2‐3), pages 161-176, June.
    • Handle: RePEc:bla:canjag:v:53:y:2005:i:2-3:p:161-176
    DOI: 10.1111/j.1744-7976.2005.00396.x
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    References listed on IDEAS

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    1. Richardson, James W. & Smith, Edward G. & Knutson, Ronald D., 1988. "Who Benefits from Farm Programs: Size and Structure Issues?," Staff Reports 257911, Texas A&M University, Agricultural and Food Policy Center.
    2. Richardson, James W. & Smith, Edward G. & Knutson, Ronald D., 1988. "Who Benefits From Farm Programs: Size And Structure Issues?," 1988 Conference, January 16-19, San Antonio, Texas 260102, Regional Research Committe NC-181: Determinants of Farm Size and Structure.
    3. Ruttan, Vernon W., 1987. "Induced innovation and agricultural development," Food Policy, Elsevier, vol. 12(3), pages 196-216, August.
    4. Huffman, Wallace E. & Evenson, Robert E., 1993. "Science for Agriculture: A Long Term Perspective," Staff General Research Papers Archive 10997, Iowa State University, Department of Economics.
    5. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275.
    6. Ruttan, Vernon W. & Hayami, Yujiro, 1971. "Technology Transfer And Agricultural Development," Staff Papers 13993, University of Minnesota, Department of Applied Economics.
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    Cited by:

    1. Andrea Pufahl & Christoph R. Weiss, 2009. "Evaluating the effects of farm programmes: results from propensity score matching," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(1), pages 79-101, March.
    2. Prasanna, P.A. Lakshmi & Kumar, Sant & Singh, Aruna, 2009. "Rice Production in India — Implications of Land Inequity and Market Imperfections," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(Conferenc).
    3. Zimmermann, Andrea & Heckelei, Thomas & Adenauer, Marcel, 2007. "Report and Code to Simulate Structural Change," Reports 57468, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    4. Darragh Clancy & A. Kazukauskas & C. Newman & Fiona Thorne, 2009. "An investigation of the level of structural change in the agrifood sector of Ireland, Denmark and the Netherlands," Working Papers 0915, Rural Economy and Development Programme,Teagasc.
    5. Zimmermann, Andrea & Heckelei, Thomas & Perez Dominguez, Ignacio, 2006. "Working paper: Literature Review of Approaches to Estimate Structural Change," Reports 9304, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.
    6. Schaible, Glenn D. & Kim, C.S. & Aillery, Marcel P., 2009. "Towards a Sustainable Future: The Dynamic Adjustment Path of Irrigation Technology and Water Management in Western U.S. Agriculture," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49244, Agricultural and Applied Economics Association.

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