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Application of Multivariate Probit to a Threshold Model of Grain Dryer Purchasing Decisions


  • Lowell Hill
  • Paul Kau


Purchase of grain dryers by farmers can be explained using a threshold theory of decision in which a reaction occurs only after the strength of the stimuli increases beyond the farmers' reaction threshold. Estimates of the causal relationships in this dichotomous decision model were obtained by using the probit technique with data from a farmer panel. The results provide an explanation of differences in the number of dryers purchased by farmers in various classes and regions. It also provides a procedure for predicting dryer ownership and purchases of dryers as an aid to forward planning by distributors of drying equipment.

Suggested Citation

  • Lowell Hill & Paul Kau, 1973. "Application of Multivariate Probit to a Threshold Model of Grain Dryer Purchasing Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(1), pages 19-27.
  • Handle: RePEc:oup:ajagec:v:55:y:1973:i:1:p:19-27.

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    Cited by:

    1. Dries, Liesbeth & Pascucci, Stefano & Gardebroek, Cornelis, 2011. "Pluriactivity in Italian Agriculture: Are Farmers Using Interlinked Strategies?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114429, European Association of Agricultural Economists.
    2. Pascucci, Stefano & de-Magistris, Tiziana, 2011. "The effects of changing regional Agricultural Knowledge and Innovation System on Italian farmers’ strategies," Agricultural Systems, Elsevier, vol. 104(9), pages 746-754.
    3. repec:ags:nareaj:158907 is not listed on IDEAS
    4. repec:ags:ajosrd:197959 is not listed on IDEAS
    5. Purvis, Malcolm J. & Otto, Daniel M., 1976. "Household Demand For Pet Food And The Ownership Of Cats And Dogs: An Analysis Of A Neglected Component Of U.S. Food Use," Staff Papers 13792, University of Minnesota, Department of Applied Economics.
    6. Debrecht, Dennis Michael, 1981. "Lending limits and the availability of credit to agricultural borrowers," ISU General Staff Papers 198101010800008411, Iowa State University, Department of Economics.

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