How Big Is Your Neighborhood? Spatial Implications Of Market Participation By Smallholder Livestock Producers
Identifying ways to increase market participation by smallholder producers requires identifying variables that influence market access. This is usually achieved using probit estimation. An important phenomenon affecting entry decision-making is the entry decision of a 'similar' household, where similarity is measured in terms of 'location.' When neighborhood influences are significant, it is important to allow for them in discrete decision contexts, such as probit estimation. This paper, therefore, assesses the magnitude of neighborhood influences in smallholder decisions concerning market entry. The empirical model is based on a cross-section of (110) farms situated in northern Philippines, visited (twice) in the 2000-2001 production year (a panel of 220 observations). The vehicle for analysis is a Bayesian formulation of a standard probit model, but one that allows for spatial autoregression in the decision vector. Estimation requires a Metropolis-step addition to a basic Gibbs sampling algorithm and generates useful insights concerning quantities that are important for market-access policy.
|Date of creation:||2003|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jens Otto Ludwig & Greg Duncan & Joshua C. Pinkston, 2000. "Neighborhood Effects on Economic Self-Sufficiency: Evidence from a Randomized Housing-Mobility Experiment," JCPR Working Papers 159, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Lapar, M. L. & Holloway, G. & Ehui, S., 2003. "Policy options promoting market participation among smallholder livestock producers: a case study from the Phillipines," Food Policy, Elsevier, vol. 28(3), pages 187-211, June.
- Chib, Siddhartha, 1993. "Bayes regression with autoregressive errors : A Gibbs sampling approach," Journal of Econometrics, Elsevier, vol. 58(3), pages 275-294, August.
- Chib, Siddhartha, 1996. "Calculating posterior distributions and modal estimates in Markov mixture models," Journal of Econometrics, Elsevier, vol. 75(1), pages 79-97, November.
- Holloway, Garth & Shankar, Bhavani & Rahman, Sanzidur, 2002.
"Bayesian spatial probit estimation: a primer and an application to HYV rice adoption,"
Blackwell, vol. 27(3), pages 383-402, November.
- Holloway, Garth & Shankar, Bhavani & Rahman, Sanzidur, 2002. "Bayesian spatial probit estimation: a primer and an application to HYV rice adoption," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 27(3), November.
- Garth John Holloway & Simeon K. Ehui, 2001. "Demand, Supply and Willingness-to-Pay for Extension Services in an Emerging-Market Setting," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 764-768.
- Stiglitz, Joseph E, 1989. "Markets, Market Failures, and Development," American Economic Review, American Economic Association, vol. 79(2), pages 197-203, May.
- 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.
- Chib, Siddhartha, 1992. "Bayes inference in the Tobit censored regression model," Journal of Econometrics, Elsevier, vol. 51(1-2), pages 79-99. Full references (including those not matched with items on IDEAS)