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https://doi.org/10.21256/zhaw-28554| Publication type: | Article in scientific journal |
| Type of review: | Peer review (publication) |
| Title: | State-contingent production technology formulation : identifying states of nature using reduced-form econometric models of crop yield |
| Authors: | Bokusheva, Raushan Baráth, Lajos |
| et. al: | No |
| DOI: | 10.1111/ajae.12424 10.21256/zhaw-28554 |
| Published in: | American Journal of Agricultural Economics |
| Volume(Issue): | 106 |
| Issue: | 2 |
| Page(s): | 805 |
| Pages to: | 827 |
| Issue Date: | 16-Aug-2023 |
| Publisher / Ed. Institution: | Wiley |
| Language: | English |
| Subjects: | Identification problem; Quasi-experimental data; State contingent approach; Structural and reduced-form model; Production analysis under uncertainty |
| Subject (DDC): | 338: Production |
| Abstract: | Conducting experiments can be time consuming and expensive, and may not always be reasonable. Therefore, empirical research often derives structural parameters based on observational data or reduced-form econometric models. The state-contingent approach presents a consistent conceptual framework for analyzing producer decisions under uncertainty. However, application of this structural form approach has been hampered by data constraints, particularly the lack of information for mapping of producers’ stochastic outputs onto a set of the states of nature representing different uncertain events. Consistent mapping of uncertainty is particularly critical in the context of multiple output production where weather shocks often have different effects across crops, and in microeconometric analyses when unobserved farm heterogeneity may confound the effect of uncertainty. Our study demonstrates how the application of reduced-form approaches can overcome constraints of structural econometric modeling associated with the lack of relevant data and presents an approach for identifying states of nature in the context of multiple output production using reduced-form econometric models of crop yield. In an empirical application based on Hungarian farm accountancy data, we demonstrate that the proposed approach allows a consistent mapping of production uncertainty in crop farming, utilizes panel data structure, and controls for potential endogeneity due to unobserved farm heterogeneity. We anticipate the presented approach to be useful for developing further the state-contingent approach and to stimulate further studies combining the strengths of structural models and reduced-form approaches. |
| URI: | https://digitalcollection.zhaw.ch/handle/11475/28554 |
| Fulltext version: | Published version |
| License (according to publishing contract): | CC BY 4.0: Attribution 4.0 International |
| Departement: | Life Sciences and Facility Management |
| Organisational Unit: | Institute of Natural Resource Sciences (IUNR) |
| Appears in collections: | Publikationen Life Sciences und Facility Management |
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| 2023_Bokusheva_State-contingent-production-technology-formulation.pdf | 378.22 kB | Adobe PDF |  View/Open |
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Bokusheva, R., & Baráth, L. (2023). State-contingent production technology formulation : identifying states of nature using reduced-form econometric models of crop yield. American Journal of Agricultural Economics, 106(2), 805–827. https://doi.org/10.1111/ajae.12424
Bokusheva, R. and Baráth, L. (2023) ‘State-contingent production technology formulation : identifying states of nature using reduced-form econometric models of crop yield’, American Journal of Agricultural Economics, 106(2), pp. 805–827. Available at: https://doi.org/10.1111/ajae.12424.
R. Bokusheva and L. Baráth, “State-contingent production technology formulation : identifying states of nature using reduced-form econometric models of crop yield,” American Journal of Agricultural Economics, vol. 106, no. 2, pp. 805–827, Aug. 2023, doi: 10.1111/ajae.12424.
BOKUSHEVA, Raushan und Lajos BARÁTH, 2023. State-contingent production technology formulation : identifying states of nature using reduced-form econometric models of crop yield. American Journal of Agricultural Economics. 16 August 2023. Bd. 106, Nr. 2, S. 805–827. DOI 10.1111/ajae.12424
Bokusheva, Raushan, and Lajos Baráth. 2023. “State-Contingent Production Technology Formulation : Identifying States of Nature Using Reduced-Form Econometric Models of Crop Yield.” American Journal of Agricultural Economics 106 (2): 805–27. https://doi.org/10.1111/ajae.12424.
Bokusheva, Raushan, and Lajos Baráth. “State-Contingent Production Technology Formulation : Identifying States of Nature Using Reduced-Form Econometric Models of Crop Yield.” American Journal of Agricultural Economics, vol. 106, no. 2, Aug. 2023, pp. 805–27, https://doi.org/10.1111/ajae.12424.
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