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- Title
Switching toward capital-intensive technologies in Finnish dairy farms.
- Authors
Pietola, Kyösti; Heikkilä, Anna-Maija
- Abstract
We analyze dairy farmers' decisions to switch from the traditional labor-intensive tied-housing system to a more capital-intensive free-stall housing. The choice of the housing system is modeled as a sequence of interrelated choices. Errors that are consistent with the observed choices are simulated and used to control for serial correlation and farm-specific fixed effects. The sequence of choices is estimated by the GHK simulation technique and simulated maximum likelihood (SML). The results suggest that the switch toward more capital-intensive free-stall housing responds positively and elastically to investment grants and a farmer's capital resources. In addition, positive revenue shocks significantly encourage switches to free-stall housing.
- Subjects
FINLAND; CAPITAL intensive industries; FARMERS; DAIRY farms; FARM management; SIMULATION methods &; models
- Publication
Agricultural Economics, 2005, Vol 33, p381
- ISSN
0169-5150
- Publication type
Article
- DOI
10.1111/j.1574-0864.2005.00078.x