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Bayesian spatial probit estimation: a primer and an application to HYV rice adoption


  • Holloway, Garth
  • Shankar, Bhavani
  • Rahman, Sanzidur


Increasingly, spatial econometric methods are becoming part of the standard toolkit of applied researchers in agricultural, environmental and development economics. Nonetheless, applications in discrete-choice settings remain few and despite its appeal, applications of the Bayesian paradigm in these settings are still fewer. We provide a primer to the Bayesian spatial probit with the objective of making accessible to non-users a class of iterative estimation methods that have become fairly routine in Bayesian circles, offer an extremely powerful addition to applied researchers toolkits, and are essential in Bayesian implementation of spatial econometric models. We demonstrate the methods and apply them to estimate the 'neighbourhood effect' in high-yielding variety (HYV) adoption among Bangladeshi rice producers. We estimate the strength of this relationship using a standard, spatial probit model and compare the policy conclusions with and without the neighbourhood effect included. © 2002 Published by Elsevier Science B.V.
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  • Holloway, Garth & Shankar, Bhavani & Rahman, Sanzidur, 2002. "Bayesian spatial probit estimation: a primer and an application to HYV rice adoption," Agricultural Economics, Blackwell, vol. 27(3), pages 383-402, November.
  • Handle: RePEc:eee:agecon:v:27:y:2002:i:3:p:383-402

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    1. Chib S. & Jeliazkov I., 2001. "Marginal Likelihood From the Metropolis-Hastings Output," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 270-281, March.
    2. Case, Anne, 1992. "Neighborhood influence and technological change," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 491-508, September.
    3. Anselin, Luc, 2002. "Under the hood Issues in the specification and interpretation of spatial regression models," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
    4. Pitt, Mark M & Sumodiningrat, Gunawan, 1991. "Risk, Schooling and the Choice of Seed Technology in Developing Countries: A Meta-Profit Function Approach," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(2), pages 457-473, May.
    5. Anselin, Luc, 2002. "Under the hood : Issues in the specification and interpretation of spatial regression models," Agricultural Economics, Blackwell, vol. 27(3), pages 247-267, November.
    6. Ahmed, Raisuddin & Hossain, Mahabub, 1990. "Developmental impact of rural infrastructure in Bangladesh:," Research reports 83, International Food Policy Research Institute (IFPRI).
    7. Azam, Jean-Paul, 1996. "The impact of floods on the adoption rate of high-yielding rice varieties in Bangladesh," Agricultural Economics, Blackwell, vol. 13(3), pages 179-189, February.
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