DETERMINANTS OF THE VALUE OF SITE-SPECIFIC INFORMATION SSI IN AGRICULTURE: A UNIFYING THEORY TO ANALYZE ITS RELATIVE IMPACTS Report as inadecuate




DETERMINANTS OF THE VALUE OF SITE-SPECIFIC INFORMATION SSI IN AGRICULTURE: A UNIFYING THEORY TO ANALYZE ITS RELATIVE IMPACTS - Download this document for free, or read online. Document in PDF available to download.

This paper develops a theoretically consistent behavioral model of farmer decision-making that allows for analysis of the relative impacts of the determinants of SSI value. The model departs from previous literature by assuming that SSI reduces uncertainty, but not eliminate it. Results show that increasing the accuracy (or the level of informativeness) of SSI, increasing initial wealth, improving management ability to reduce uncertainty in the posterior, and increasing the uncertainty in the prior, increases the value of SSI. Furthermore, mean input use is found to decrease, as SSI becomes more informative. On the other hand, the value of SSI is found to be decreasing as relative risk aversion increases. These results have policy implications for controlling non-point source pollution from fertilizer inputs and SSI-adoption behavior.

Subject(s): Farm Management

Research Methods/ Statistical Methods

Issue Date: 2000

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/21779

Total Pages: 28

Series Statement: Selected Paper

Record appears in: American Agricultural Economics Association (AAEA) > 2000 Annual meeting, July 30-August 2, Tampa, FL





Author: Rejesus, Roderick M. ; Nelson, Carl H.

Source: http://ageconsearch.umn.edu/record/21779?ln=en



DOWNLOAD PDF




Related documents