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Estimation of Treatment Effects of recombinant Bovine Somatotropin using Matching Samples

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  • Tauer, Loren W.

Abstract

The production and profit impacts of recombinant Bovine Somatotropin (rbST) on select New York dairy farms were estimated using data over the years 1994 through 2004, by comparing matching farms which use and do not use rbST. The use of rbST increases milk production per cow and decreases the cost of production per hundredweight of milk. The cost penalty (cost reduction) is $0.39 per hundredweight for those currently using rbST to stop using rbST, while the average treatment effect is $0.73.

Suggested Citation

  • Tauer, Loren W., 2008. "Estimation of Treatment Effects of recombinant Bovine Somatotropin using Matching Samples," Working Papers 51118, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:51118
    DOI: 10.22004/ag.econ.51118
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    References listed on IDEAS

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    1. Knoblauch, Wayne A. & Putnam, Linda D., 2005. "Dairy Farm Business Summary, New York Dairy Farm Renters, 2004," EB Series 122045, Cornell University, Department of Applied Economics and Management.
    2. Zdenko Stefanides & Loren W. Tauer, 1999. "The Empirical Impact of Bovine Somatotropin on a Group of New York Dairy Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 95-102.
    3. Knoblauch, Wayne A. & Putnam, Linda D. & Karszes, Jason, 2005. "Business Summary New York State 2004," Research Bulletins 122088, Cornell University, Department of Applied Economics and Management.
    4. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    5. Guido W. Imbens, 2004. "Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 4-29, February.
    6. Keith O. Fuglie & Darrell J. Bosch, 1995. "Economic and Environmental Implications of Soil Nitrogen Testing: A Switching-Regression Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 891-900.
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    Cited by:

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    2. Jeffrey Gillespie & Richard Nehring & Isaac Sitienei, 2014. "The adoption of technologies, management practices, and production systems in U.S. milk production," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-24, December.
    3. Gillespie, Jeffrey & Qushim, Berdikul & Nyaupane, Narayan & McMillin, Kenneth, 2015. "Breeding Technologies in U.S. Meat Goat Production: Who Are the Adopters and How Does Adoption Impact Productivity?," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(3), pages 1-25, December.
    4. Koirala, Krishna H. & Mishra, Ashok K. & Mohanty, Samarendu, 2014. "The Role of Gender in Agricultural Productivity in the Philippines: The Average Treatment Effect," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 195705, Southern Agricultural Economics Association.
    5. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    6. Mishra, Ashok K. & Kumar, Anjani & Joshi, Pramod K. & D'souza, Alwin, 2016. "Impact of contracts in high yielding varieties seed production on profits and yield: The case of Nepal," Food Policy, Elsevier, vol. 62(C), pages 110-121.
    7. Williams, Brian R. & DeVuyst, Eric A. & Peel, Derrell S. & Raper, Kellie Curry, 2014. "Reducing Self-Selection Bias in Feeder Cattle Premium Estimates Using Matched Sampling," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-15, April.
    8. Gillespie, Jeffrey & Nehring, Richard, 2014. "Pasture-Based versus Conventional Milk Production: Where Is the Profit?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 543-558, November.
    9. Qushim, Berdikul & Gillespie, Jeffrey, 2016. "Women Farm Operators in the U.S. Meat Goat Production: Who is More Productive?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230004, Southern Agricultural Economics Association.
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    11. Gillespie, Jeffrey M. & Nehring, Richard F., 2012. "The Economics of Organic Versus Conventional Cow-calf Production," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119773, Southern Agricultural Economics Association.
    12. repec:spr:agfoec:v:2:y:2014:i:1:p:1-24 is not listed on IDEAS
    13. Kedar, Vishnu Shankarrao & Kumar, Parmod & Neharkar, Pratibha, 2021. "Transaction Costs, Institutions and Smallholder Market Integration: Chili Producers in India," 2021 Annual Meeting, August 1-3, Austin, Texas 313970, Agricultural and Applied Economics Association.
    14. Vishnu, Kedar & Parmod, Kumar & Neharkar, Pratibha, 2021. "Transaction Costs, Institutional Arrangements and Smallholders Participation: Tomato Marketing By Small Producers in India," 2021 Conference, August 17-31, 2021, Virtual 315151, International Association of Agricultural Economists.

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