IDEAS home Printed from https://ideas.repec.org/p/ags/aaea07/9836.html
   My bibliography  Save this paper

Testing for Complementarity and Substitutability among Multiple Technologies: The Case of U.S. Hog Farms

Author

Listed:
  • Yu, Li
  • Hurley, Terrance M.
  • Kliebenstein, James B.
  • Orazem, Peter F.

Abstract

The hypothetical distribution of multiple technology adoptions under the assumption that technologies are mutually independent is compared against the actual observed distribution of technology adoptions on hog farms. Combinations of technologies that occur with greater frequency than would occur under independence are mutually complementary technologies. Combinations that occur with less frequency are substitute technologies. This method is easily applied to simultaneous decisions regarding many technologies. We find that some technologies used in pork production are mutually substitutable for one another while others are complementary. However, as the number of bundled technologies increases, they are increasingly likely to be complementary with one another, even if subsets are substitutes when viewed in isolation. This finding suggests that farmers have an incentive to adopt many technologies at once. Larger farms and farms run by more educated operators are the most likely to adopt multiple technologies. Our findings suggest that the complementarity among technologies in large bundles is contributing to a form of returns to scale that is leading to increasing growth in average farm size.

Suggested Citation

  • Yu, Li & Hurley, Terrance M. & Kliebenstein, James B. & Orazem, Peter F., 2007. "Testing for Complementarity and Substitutability among Multiple Technologies: The Case of U.S. Hog Farms," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9836, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea07:9836
    DOI: 10.22004/ag.econ.9836
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/9836/files/sp07yu01.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.9836?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aberham Darge & Jema Haji & Fekadu Beyene & Mengistu Ketema, 2023. "Smallholder Farmers’ Climate Change Adaptation Strategies in the Ethiopian Rift Valley: The Case of Home Garden Agroforestry Systems in the Gedeo Zone," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    2. Kirui, Oliver & Mrzabaev, Alisher, 2015. "Costs of landj degradation in Eastern Africa," 2015 Conference, August 9-14, 2015, Milan, Italy 212007, International Association of Agricultural Economists.
    3. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele A. & Mmbando, Frank & Mekuria, Mulugetta, 2012. "Interdependence in Farmer Technology Adoption Decisions in Smallholder Systems: Joint Estimation of Investments in Sustainable Agricultural Practices in Rural Tanzania," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126791, International Association of Agricultural Economists.
    4. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele & Mmbando, Frank & Muricho, Geoffrey, 2012. "Plot and Household-Level Determinants of Sustainable Agricultural Practices in Rural Tanzania," RFF Working Paper Series dp-12-02-efd, Resources for the Future.
    5. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele & Mmbando, Frank & Mekuria, Mulugetta, 2013. "Adoption of interrelated sustainable agricultural practices in smallholder systems: Evidence from rural Tanzania," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 525-540.
    6. Gebregziabher, Gebrehaweria & Rebelo, Lisa-Maria & Notenbaert, A. & Ergano, K. & Abebe, Yenenesh, 2013. "Determinants of adoption of rainwater management technologies among farm households in the Nile River Basin," IWMI Reports 201008, International Water Management Institute.

    More about this item

    Keywords

    Farm Management; Productivity Analysis;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea07:9836. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.