Sequential Adoption of Site‐Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model

American Journal of Agricultural Economics - Tập 83 Số 1 - Trang 35-51 - 2001
Madhu Khanna1,2,3
1Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, Urbana, IL
2The author thanks Anil Bera, Scott Swinton, Insan Tunali, and two anonymous reviewers for their helpful comments and suggestions.
3This research was supported by a grant from the Illinois Council for Food and Agricultural Research.

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AbstractThis paper analyzes the sequential decision to adopt two site‐specific technologies, soil testing and variable rate technology, and the impact of adoption on nitrogen productivity. The results indicate that while farm location was a key variable influencing adoption of soil testing, farm size, human capital, and innovativeness of farmers had a significant impact on adoption of variable rate technology in four Midwestern states. A double selectivity model applied to correct for sample selection bias shows that adoption leads to significant gains in nitrogen productivity for farms with below average soil quality but statistically insignificant gains for farms with above average soil quality.

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American Journal of Agricultural Economics

Tập 83 Số 1

35-51

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