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Two‐Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions

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  • Ani L. Katchova
  • Mario J. Miranda

Abstract

We examine how farm characteristics affect marketing contract decisions. We relax the restrictive assumptions of Tobit, Poisson, and multinomial logit models and consider the quantity, frequency, and contract type decisions conditional on, rather than jointly with, the contract adoption decision. In contrast to earlier studies on marketing contract decisions, we estimate a two‐step econometric model using Agricultural Resource Management Study data and find that farm characteristics affecting decisions to adopt marketing contracts differ from those affecting decisions regarding quantity, frequency, and contract type.

Suggested Citation

  • Ani L. Katchova & Mario J. Miranda, 2004. "Two‐Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions," American Journal of Agricultural Economics, John Wiley & Sons, vol. 86(1), pages 88-102, February.
    • Handle: RePEc:wly:ajagec:v:86:y:2004:i:1:p:88-102
    DOI: 10.1111/j.1467-8276.2004.tb18458.x
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    1. Barry K. Goodwin & Ted C. Schroeder, 1994. "Human Capital, Producer Education Programs, and the Adoption of Forward-Pricing Methods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 936-947.
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economic Reports 34081, United States Department of Agriculture, Economic Research Service.
    4. Barry K. Goodwin & Terry L. Kastens, 1996. "An Analysis of Marketing Frequency by Kansas Crop Producers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(4), pages 575-584.
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