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Application of Multivariate Probit to a Threshold Model of Grain Dryer Purchasing Decisions

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  • Lowell Hill
  • Paul Kau

Abstract

Purchase of grain dryers by farmers can be explained using a threshold theory of decision in which a reaction occurs only after the strength of the stimuli increases beyond the farmers' reaction threshold. Estimates of the causal relationships in this dichotomous decision model were obtained by using the probit technique with data from a farmer panel. The results provide an explanation of differences in the number of dryers purchased by farmers in various classes and regions. It also provides a procedure for predicting dryer ownership and purchases of dryers as an aid to forward planning by distributors of drying equipment.

Suggested Citation

  • Lowell Hill & Paul Kau, 1973. "Application of Multivariate Probit to a Threshold Model of Grain Dryer Purchasing Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 55(1), pages 19-27.
    • Handle: RePEc:oup:ajagec:v:55:y:1973:i:1:p:19-27.
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    File URL: http://hdl.handle.net/10.2307/1238657
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    1. Pascucci, Stefano & de-Magistris, Tiziana, 2011. "The effects of changing regional Agricultural Knowledge and Innovation System on Italian farmers’ strategies," Agricultural Systems, Elsevier, vol. 104(9), pages 746-754.
    2. Faruque-As-Sunny & Zuhui Huang & Taonarufaro Tinaye Pemberai Karimanzira, 2018. "Investigating Key Factors Influencing Farming Decisions Based on Soil Testing and Fertilizer Recommendation Facilities (STFRF)—A Case Study on Rural Bangladesh," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    3. Debertin, David L. & Pagoulatos, Angelos & Smith, Eldon D., 1980. "Estimating Linear Probability Functions: A Comparison Of Approaches," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(2), pages 1-5, December.
    4. LaDue, Eddy L. & Miller, Lynn H. & Kwiatkowski, Joseph H., 1990. "Investment Behavior And Energy Conservation," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 19(2), pages 1-10, October.
    5. Rae, Allan N. & Carman, Hoy F., 1975. "A Model Of New Zealand Apple Supply Response To Technological Change," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 19(1), pages 1-13, April.
    6. Adams, Abdulai & Jumpah, Emmanuel Tetteh & Caesar, Livingstone Divine, 2021. "The nexuses between technology adoption and socioeconomic changes among farmers in Ghana," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    7. Makus, Larry D. & Lin, Biing-Hwan & Carlson, John & Krebill-Prather, Rose, 1990. "Factors Influencing Producer Decisions On The Use Of Futures And Options In Commodity Marketing," A.E. Research Series 305069, University of Idaho, Department of Agricultural Economics and Rural Sociology.
    8. Perry, Janet E. & Mishra, Ashok K., 1999. "Forward Contracting Of Inputs: A Farm-Level Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2), pages 1-15.
    9. Misganaw Teshager Abeje & Atsushi Tsunekawa & Enyew Adgo & Nigussie Haregeweyn & Zerihun Nigussie & Zemen Ayalew & Asres Elias & Dessalegn Molla & Daregot Berihun, 2019. "Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    10. Willis, Cleve E. & Crawford, Charles O., 1976. "Methodological Issues In Analyses Of Use And Adequacy Of Community Services In Rural Areas: With An Application To Legal Services In The Northeast," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 0(Number 2), pages 1-12, October.
    11. Boimah, Mavis & Weible, Daniela, 2022. "Consumer behavior towards imported dairy products: a cross-cultural analysis of products from three origins in Ghana and Senegal," Conference papers 333409, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Dries, Liesbeth & Pascucci, Stefano & Gardebroek, Cornelis, 2011. "Pluriactivity in Italian Agriculture: Are Farmers Using Interlinked Strategies?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114429, European Association of Agricultural Economists.
    13. Wongnaa, Camillus Abawiera & Babu, Suresh, 2020. "Building resilience to shocks of climate change in Ghana's cocoa production and its effect on productivity and incomes," Technology in Society, Elsevier, vol. 62(C).
    14. Willis, Cleve E. & Crawford, Charles O., 1976. "Methodological Issues In Analyses Of Use And Adequacy Of Community Services In Rural Areas: With An Application To Legal Services In The Northeast," Journal of the Northeastern Agricultural Economics Council, Northeastern Agricultural and Resource Economics Association, vol. 5(2), pages 1-12, October.
    15. Fletcher, Stanley M. & McWatters, Kay H. & Resurreccion, Anna V.A., 1990. "Analysis Of Consumer'S Willingness To Pay For New Fried Food Prepared From Cowpea Flour," Working Papers 115909, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    16. Spinks, Thomas & Dahl, Dale C., 1981. "Inputs Used in U.S. Farm Production: A Bibliography of Selected Economic Studies, 1950-80," Economics and Statistics Services (ESS) Reports 319963, United States Department of Agriculture, Economic Research Service.
    17. Akudugu, M. A., 2012. "Estimation of the Determinants of Credit Demand by Farmers and Supply by Rural Banks in Ghana’s Upper East Region," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 2(02), pages 1-13, June.
    18. Wahab, S. & Asuming-Brempong, Samuel, 2008. "Benefit-Cost Analysis and Socio-Economic Considerations of Trypanosomiasis Control and Treatment in Northern Ghana," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52878, African Association of Agricultural Economists (AAAE).
    19. Marcos A. Lastiri-Hernández & D. Álvarez-Bernal & R. Moncayo-Estrada & G. Cruz-Cárdenas & J. T. Silva García, 2021. "Adoption of phytodesalination as a sustainable agricultural practice for improving the productivity of saline soils," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8798-8814, June.
    20. Purvis, Malcolm J. & Otto, Daniel M., 1976. "Household Demand For Pet Food And The Ownership Of Cats And Dogs: An Analysis Of A Neglected Component Of U.S. Food Use," Staff Papers 13792, University of Minnesota, Department of Applied Economics.
    21. Debrecht, Dennis Michael, 1981. "Lending limits and the availability of credit to agricultural borrowers," ISU General Staff Papers 198101010800008411, Iowa State University, Department of Economics.

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