Simultaneity of Technology Adoption and Productivity
A simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is s...
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Western Agricultural Economics Association
1994-07-01
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Online Access: | https://ageconsearch.umn.edu/record/31232 |
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doaj-7e17ab8ca002441dbe467dd3143290982020-11-24T23:59:38ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851994-07-01191465710.22004/ag.econ.3123231232Simultaneity of Technology Adoption and ProductivityLydia ZepedaA simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is subject to simultaneity bias. Since the system of equations contains both continuous and discrete endogenous variables, generalized probit is used. The findings indicate that the biased single-equation estimates tend to exaggerate relationships with explanatory variables, and in some cases, lead to different implications. This emphasizes the need to use the consistent and asymptotically more efficient generalized probit results to account for simultaneity.https://ageconsearch.umn.edu/record/31232californiadairygeneralized probitsimultaneous equationstechnology adoption |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Lydia Zepeda |
spellingShingle |
Lydia Zepeda Simultaneity of Technology Adoption and Productivity Journal of Agricultural and Resource Economics california dairy generalized probit simultaneous equations technology adoption |
author_facet |
Lydia Zepeda |
author_sort |
Lydia Zepeda |
title |
Simultaneity of Technology Adoption and Productivity |
title_short |
Simultaneity of Technology Adoption and Productivity |
title_full |
Simultaneity of Technology Adoption and Productivity |
title_fullStr |
Simultaneity of Technology Adoption and Productivity |
title_full_unstemmed |
Simultaneity of Technology Adoption and Productivity |
title_sort |
simultaneity of technology adoption and productivity |
publisher |
Western Agricultural Economics Association |
series |
Journal of Agricultural and Resource Economics |
issn |
1068-5502 2327-8285 |
publishDate |
1994-07-01 |
description |
A simultaneous equation generalized probit model is estimated to determine factors affecting technology adoption by California dairy farmers. Since productivity and technology choice are jointly determined, a single-equation approach to determine whether productivity affects technology adoption is subject to simultaneity bias. Since the system of equations contains both continuous and discrete endogenous variables, generalized probit is used. The findings indicate that the biased single-equation estimates tend to exaggerate relationships with explanatory variables, and in some cases, lead to different implications. This emphasizes the need to use the consistent and asymptotically more efficient generalized probit results to account for simultaneity. |
topic |
california dairy generalized probit simultaneous equations technology adoption |
url |
https://ageconsearch.umn.edu/record/31232 |
work_keys_str_mv |
AT lydiazepeda simultaneityoftechnologyadoptionandproductivity |
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1725447033748193280 |