Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204308
Authors: 
Arnberg, Søren
Hansen, Lars Gårn
Year of Publication: 
2010
Series/Report no.: 
FOI Working Paper 2010/3
Abstract: 
This study develops a dynamic multi-output model of farmers' crop allocation decisions that allows estimation of both short-run and long-run adjustments to a wide array of economic incentives. The method can be used to inform decision-makers about a number of issues including agricultural policy reform and environmental regulation. The model allows estimation of dynamic effects relating to price expectations adjustment, investment lags and crop rotation constraints. Estimation is based on micro-panel data from Danish farmers that includes acreage, output and variable input utilisation at the crop level. Results indicate that there are substantial differences between the shortrun and long-run land allocation behaviour of Danish farmers and that there are substantial differences in the time lags associated with different crops. Since similar farming conditions are found in northern Europe and parts of the USA and Canada, this result may have more general interest.
Subjects: 
land allocation
crop rotation
system of dynamic equations
micro panel data
GMM
JEL: 
C33
Q12
Q15
Document Type: 
Working Paper

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