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Evidence against Imposing Restrictions on Hurdle Models as a Test for Simultaneous versus Sequential Decision Making

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  • William J Burke

Abstract

Agricultural economists frequently employ hurdle models to estimate the determinants of truncated outcomes such as market participation and adoption. A pervasive belief is that restrictions can be placed on hurdle models to test whether the decisions made in the underlying data-generating process occurred sequentially or simultaneously. This article argues against the ability to draw this conclusion and further submits there is a negative correlation between failing to reject these restrictions and sample size. Evidence to support both proposals comes from data collected in a natural setting, as well as simulated data with a known data-generating mechanism.

Suggested Citation

  • William J Burke, 2019. "Evidence against Imposing Restrictions on Hurdle Models as a Test for Simultaneous versus Sequential Decision Making," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1473-1481.
    • Handle: RePEc:oup:ajagec:v:101:y:2019:i:5:p:1473-1481.
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    File URL: http://hdl.handle.net/10.1093/ajae/aaz026
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    Cited by:

    1. Chrispin Sunganani Kaphaika & Samson Pilanazo Katengeza & Innocent Pangapanga-Phiri & Madalitso Happy Chambukira, 2023. "More Interventions, Low Adoption: To What Extent Are the Existing Seed Sources to Blame? The Case of Orange Fleshed Sweet Potato in Central and Northern Malawi," Sustainability, MDPI, vol. 15(19), pages 1-20, September.
    2. Felister Y. Tibamanya & Mursali A. Milanzi & Arne Henningsen, 2021. "Drivers of and Barriers to Adoption of Improved Sun- flower Varieties amongst Smallholder Farmers in Singida, Tanzania: the Double-Hurdle Approach," IFRO Working Paper 2021/03, University of Copenhagen, Department of Food and Resource Economics.
    3. Bert Lenaerts & Yann de Mey & Matty Demont, 2022. "Revisiting multi‐stage models for upstream technology adoption: Evidence from rapid generation advance in rice breeding," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 277-300, February.

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