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Spatial effects in investment decisions: Evidence from French dairy farms

Author

Listed:
  • Loic Levi

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Obafemi Philippe Koutchade

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Laure Latruffe

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

  • Aude Ridier

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST)

Abstract

This article analyses the spatial effects in farmers' investment decisions, in particular the role of neighbourhood effects, for the specific case of dairy farmers in a region of Western France. Investment decisions are measured by investment spikes, enabling the analysis to be linked to the literatu re on adoption of technology innovati on. The main contribution is in accounting for the effect of the previous decisions of the farmers' neighbour s, with the help of a spatial probit econometric model that includes investment age. Results show that farmers are not immediately influenced by the simultaneous ly-made decisions of their neighbours, but rather by the decisions taken by their neighbours in the year before. However, this positive influence does not compensate for the negative effect of own previous investment decisions

Suggested Citation

  • Loic Levi & Obafemi Philippe Koutchade & Laure Latruffe & Aude Ridier, 2018. "Spatial effects in investment decisions: Evidence from French dairy farms," Post-Print hal-02024077, HAL.
    • Handle: RePEc:hal:journl:hal-02024077
    Note: View the original document on HAL open archive server: https://hal.science/hal-02024077
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