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Multiple Herbicide Use in Cropland: A Discrete-Continuous Model for Stated Choice Data

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  • Andrea Pellegrini
  • John Rose
  • Riccardo Scarpa

Abstract

Using a random utility consistent discrete-continuous model, we analyze decisions by a sample of Australian farmers on the mix of herbicides and their intensity of use. The proposed model is flexible and even accommodates decisions concerning a single herbicide. We use a sequential quadratic programming-based forecasting approach to predict optimal herbicide types and allocations. Structural estimates are used to forecast how price changes affect herbicide demand. The forecasting approach allows for calibration of alternative specific constants to reproduce existing brand market shares.

Suggested Citation

  • Andrea Pellegrini & John Rose & Riccardo Scarpa, 2022. "Multiple Herbicide Use in Cropland: A Discrete-Continuous Model for Stated Choice Data," Land Economics, University of Wisconsin Press, vol. 98(2), pages 355-375.
    • Handle: RePEc:uwp:landec:v:98:y:2022:i:2:p:355-375
    Note: DOI: 10.3368/le.98.2.092520-0150R1
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    File URL: http://le.uwpress.org/cgi/reprint/98/2/355
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    More about this item

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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