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Modelling Rural Land Use in New Zealand - A Discrete Choice Perspective


  • Timar, Levente


The economic model I use to describe landowners’ land use decisions is a standard discrete choice random utility maximization model.1 Land is of heterogeneous quality, and suitability for the various uses depends on (multiple dimensions of) quality. Therefore, at any given time, potential benefits derived from each parcel vary by use. As economic conditions change, production technologies advance and the farmer accumulates human capital, the relative desirability of land use alternatives may change on any parcel. When the top-ranked alternative changes due to these forces, the farmer converts the parcel to a different use. The observed pattern of land use therefore represents a snapshot of outcomes from a dynamic process.

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  • Timar, Levente, 2011. "Modelling Rural Land Use in New Zealand - A Discrete Choice Perspective," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100719, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:100719

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    1. William Henry Kaye-Blake & Walt L. Abell & Eva Zellman, 2009. "Respondents' ignoring of attribute information in a choice modelling survey," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 547-564, October.
    2. Noussair, Charles & Robin, Stephane & Ruffieux, Bernard, 2002. "Do consumers not care about biotech foods or do they just not read the labels?," Economics Letters, Elsevier, vol. 75(1), pages 47-53, March.
    3. Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
    4. Denzil G. Fiebig & Michael P. Keane & Jordan Louviere & Nada Wasi, 2010. "The Generalized Multinomial Logit Model: Accounting for Scale and Coefficient Heterogeneity," Marketing Science, INFORMS, vol. 29(3), pages 393-421, 05-06.
    5. Darby, Michael R & Karni, Edi, 1973. "Free Competition and the Optimal Amount of Fraud," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 67-88, April.
    6. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, March.
    7. McCluskey, Jill J. & Loureiro, Maria L., 2003. "Consumer Preferences And Willingness To Pay For Food Labeling: A Discussion Of Empirical Studies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 34(03), November.
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