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Effects of switching between production systems in dairy farming

Bio-based and Applied Economics

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Title Effects of switching between production systems in dairy farming
 
Creator Alvarez, Antonio
Arias, Carlos; Departamento de Economia y Estadistica
Universidad de Leon
Spain
 
Subject dairy farms; intensiļ¬cation; latent class model; panel data
C23; D24; Q12
 
Description The increasing intensification of dairy farming in Europe has sparked an interest in studying the economic consequences of this process. However, empirically classifying farms as extensive or intensive is not a straightforward task. In recent papers, Latent Class Models (LCM) have been used to avoid an ad-hoc split of the sample into intensive and extensive dairy farms. A limitation of current specifications of LCM is that they do not allow farms to switch between different productive systems over time. This feature of the model is at odds with the process of intensification of the European dairy industry in recent decades. We allow for changes of production system over time by estimating a single LCM model but splitting the original panel into two periods, and find that the probability of using the intensive technology increases over time. Our estimation proposal opens up the possibility of studying the effects of intensification not only across farms but also over time.
 
Publisher Bio-based and Applied Economics
Bio-based and Applied Economics
 
Contributor
 
Date 2015-01-13
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion

 
Format application/pdf
text/html
 
Identifier http://www.fupress.net/index.php/bae/article/view/14715
http://www.fupress.net/index.php/bae/article/download/14715/15145
http://www.fupress.net/index.php/bae/article/download/14715/15178
10.13128/BAE-14715
 
Source Bio-based and Applied Economics; Vol 4, No 1 (2015); 1-16
Bio-based and Applied Economics; Vol 4, No 1 (2015); 1-16
2280-6172
2280-6180
 
Language eng
 
Relation 10.13128/BAE-14715
10.13128/BAE-14715