Explaining structural policy use by farmers with discrete choice models: an evaluation of structural policies supported by the EAGGF
نویسندگان
چکیده
A farmer’s choice to make an on-farm investment programme can be modelled as a discrete choice amongst finite alternatives. The idea of this paper is to test the possibility of using discrete choice models in the field of the evaluation of structural policies. Farmers choose to take part into agricultural programmes according to their preferences, and farm structural and economic characteristics. Adhesion to a voluntary scheme or policy can be cast as a discrete choice problem. Hence, discrete choice models are adequate to describe probability of choice using a utility maximization framework. First, we want to explore if the choice of investing depends on farms’ characteristics, such as Used Agricultural Area, Standard Gross Margin, Farm type, Possession of lands, Form of Farm Management, Standard Work Unit, class of European Size Unit, Fixed costs, etc.. We use the binomial logit model to explain the probability of making an on-farm investment in 1999 with regards to Italian Northern and Central Regions. The estimation of this model allows us to identify the determinants of such a decision. We also use discrete choice analysis to identify the significant determinants of the probability of selection of on-farm investment across 12 investment categories within the Regulation
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