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Sequential Adoption of Site‐Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model
Author(s) -
Khanna Madhu
Publication year - 2001
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.1111/0002-9092.00135
Subject(s) - productivity , variable (mathematics) , sample (material) , human capital , quality (philosophy) , econometrics , economics , agricultural science , business , mathematics , environmental science , economic growth , chemistry , mathematical analysis , chromatography , philosophy , epistemology
This paper analyzes the sequential decision to adopt two site‐specific technologies, soil testing and variable rate technology, and the impact of adoption on nitrogen productivity. The results indicate that while farm location was a key variable influencing adoption of soil testing, farm size, human capital, and innovativeness of farmers had a significant impact on adoption of variable rate technology in four Midwestern states. A double selectivity model applied to correct for sample selection bias shows that adoption leads to significant gains in nitrogen productivity for farms with below average soil quality but statistically insignificant gains for farms with above average soil quality.