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Technical Change and the Structure of Production: A Non-stationary Markov Analysis

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  • Zepeda, Lydia

Abstract

Elasticities of farm structure and of the probabilities of movement from one size of farm to another are derived and calculated from a Markov model. They are used to examine the impact of technical change on the size distribution of farms over time. Imperfectly observed aggregate data are used to estimate non-stationary transition probabilities which characterise movement in farm size. The model examines the structure of small (one to 29 cows), medium (30 to 49 cows), large (50 to 99 cows), and very large (100 or more cows) Wisconsin dairy farms during the 1980s and early 1990s. Findings confirm the non-stationary nature of the evolution in farm structure. Copyright 1995 by Oxford University Press.

Suggested Citation

  • Zepeda, Lydia, 1995. "Technical Change and the Structure of Production: A Non-stationary Markov Analysis," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 22(1), pages 41-60.
    • Handle: RePEc:oup:erevae:v:22:y:1995:i:1:p:41-60
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    Cited by:

    1. Madior Fall & Laurent Piet & Muriel Roger, 2010. "Trends in the French commercial farm population," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(3), pages 279-295.
    2. Karantininis, Kostas, 2002. "Information-based estimators for the non-stationary transition probability matrix: an application to the Danish pork industry," Journal of Econometrics, Elsevier, vol. 107(1-2), pages 275-290, March.
    3. Neuenfeldt, S. & Rieger, J. & Heckelei, T. & Gocht, A. & Ciaian, P. & Tetteh, G., 2018. "A multiplicative competitive interaction model to explain structural change along farm specialisation, size and exit/entry using Norwegian farm census data," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277090, International Association of Agricultural Economists.
    4. Huettel, Silke & Jongeneel, Roelof A., 2008. "Structural Change in the Dairy Sectors of Germany and The Netherlands - A Markov Chain Analysis," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43659, European Association of Agricultural Economists.
    5. Legrand D. F. Saint‐Cyr, 2022. "Heterogeneous farm‐size dynamics and impacts of subsidies from agricultural policy: Evidence from France," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(3), pages 893-923, September.
    6. Cevat Sipahi, 2022. "The Effect of Different Environmental Factors on Milk Yield Characteristics of Holstein Fresian Cattle Raised with Different Production Scale on Teke Region of Turkey," Sustainability, MDPI, vol. 14(21), pages 1-8, October.
    7. Alexander Gocht & Norbert Röder & Sebastian Neuenfeldt & Hugo Storm & Thomas Heckelei, 2012. "Modelling farm structural change: A feasibility study for ex-post modelling utilizing FADN and FSS data in Germany and developing an ex-ante forecast module for the CAPRI farm type layer baseline," JRC Research Reports JRC75524, Joint Research Centre.
    8. Jongeneel, Roelof A. & Longworth, Natasha & Huettel, Silke, 2005. "Dairy Farm Size Distribution in East and West: Evolution and Sensitivity to Structural and Policy Variables: Case-Studies of the Netherlands, Germany, Poland and Hungary," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24772, European Association of Agricultural Economists.
    9. Legrand D. F, Saint-Cyr, 2017. "Farm heterogeneity and agricultural policy impacts on size dynamics: evidence from France," Working Papers SMART 17-04, INRAE UMR SMART.
    10. Niskanen, Olli & Iho, Antti & Kalliovirta, Leena, 2020. "Scenario for structural development of livestock production in the Baltic littoral countries," Agricultural Systems, Elsevier, vol. 179(C).
    11. Piet, Laurent, 2008. "The evolution of farm size distribution: revisiting the Markov chain model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44269, European Association of Agricultural Economists.
    12. Neuenfeldt, Sebastian & Gocht, Alexander & Ciaian, Pavel & Heckelei, Thomas & Jongeneel, Roel, 2017. "Structural Change In European Agriculture," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261141, European Association of Agricultural Economists.
    13. Jean-Pierre Butault & Nathalie Delame, 2005. "Concentration de la production agricole et croissance des exploitations," Économie et Statistique, Programme National Persée, vol. 390(1), pages 47-64.
    14. Unay-Gailhard, İlkay & Bojnec, Štefan, 2016. "Sustainable participation behaviour in agri-environmental measures," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 138, pages 47-58.

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