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Joint Adoption Of Multiple Technologies: A Dual, Latent Demand Approach

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  • Lichtenberg, Erik
  • Strand, Ivar E., Jr.

Abstract

Latent demand models can be used to overcome computational difficulties that frequently hamper empirical evaluation of relatedness in the adoption of multiple technologies. This paper develops and applies such an approach to a case involving agricultural soil and water conservation. The results indicate both complementarity and substitution. Own-price elasticities of demand for all technologies and cross-price elasticities of demand for related technologies are substantial. The results are used to derive implications for the design and implementation of cost sharing programs, which have been one of the primary policies used to address nonpoint source agricultural water pollution problems.

Suggested Citation

  • Lichtenberg, Erik & Strand, Ivar E., Jr., 2000. "Joint Adoption Of Multiple Technologies: A Dual, Latent Demand Approach," Working Papers 28566, University of Maryland, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:umdrwp:28566
    DOI: 10.22004/ag.econ.28566
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    References listed on IDEAS

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    Cited by:

    1. Lichtenberg, Erik, 2001. "Tenancy and Soil Conservation in Market Equilibrium," 2001 Annual meeting, August 5-8, Chicago, IL 20489, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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