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Modeling Multiple Adoption Decisions in a Joint Framework
Jeffrey H. Dorfman
American Journal of Agricultural Economics
Vol. 78, No. 3 (Aug., 1996), pp. 547-557
Stable URL: http://www.jstor.org/stable/1243273
Page Count: 11
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A multinomial probit (MNP) model is applied to the modeling of adoption decisions by farmers facing multiple technologies which can be adopted in various combinations. This model allows for full investigation of the interactions between decisions to adopt or not adopt several technologies. Estimation is carried out in a Bayesian framework employing Gibbs sampling to circumvent past difficulties encountered in maximum likelihood estimation of the MNP model. The model is estimated for a sample of U.S. apple growers with four possible sustainable production technology bundles. The results show that adoption decisions are most significantly influenced by off-farm labor supply.
American Journal of Agricultural Economics © 1996 Agricultural & Applied Economics Association