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A Dynamic Decision Model of Technology Adoption under Uncertainty: Case of Herbicide-Resistant Rice

Author

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  • Annou, Mamane Malam
  • Wailes, Eric J.
  • Thomsen, Michael R.

Abstract

Herbicide-resistant (HR) rice technology is a potential tool for control of red rice in commercial rice production. Using an ex ante mathematical programming framework, this research presents an empirical analysis of HR rice technology adoption under uncertainty. The analysis accounts for stochastic germination of red rice and sheath blight to model a profit maximization problem of crop rotation among HR rice, regular rice, and soybeans. The results demonstrate that risk attitudes and technology efficiency determine adoption rates and optimal rotation patterns.

Suggested Citation

  • Annou, Mamane Malam & Wailes, Eric J. & Thomsen, Michael R., 2005. "A Dynamic Decision Model of Technology Adoption under Uncertainty: Case of Herbicide-Resistant Rice," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(1), pages 1-12, April.
    • Handle: RePEc:ags:joaaec:43724
    DOI: 10.22004/ag.econ.43724
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    References listed on IDEAS

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    7. Dillon, Carl R., 1992. "Microeconomic Effects Of Reduced Yield Variability Cultivars Of Soybeans And Wheat," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 24(1), pages 121-133, July.
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    Cited by:

    1. Busdieker-Jesse, Nichole L. & Nogueira, Lia & Onal, Hayri & Bullock, David S., 2016. "The Economic Impact of New Technology Adoption on the U.S. Apple Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-21, September.
    2. Lyman, Nathaniel & Nalley, Lawton Lanier, 2013. "Stochastic Valuation of Hybrid Rice Technology in Arkansas," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142505, Southern Agricultural Economics Association.

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