ECONOMIES OF DENSITY VERSUS NATURAL ADVANTAGE: CROP CHOICE ON THE BACK FORTY

ECONOMIES OF DENSITY VERSUS NATURAL ADVANTAGE: CROP CHOICE ON THE BACK FORTY

We estimate the factors determining specialization of crop choice at the level of individual fields, distinguishing between the role of natural advantage (soil characteristics) and economies of density (scale economies achieved when farmers plant neighboring fields the same). Using rich geographic d...

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Veröffentlicht in:The review of economics and statistics 2012-02, Vol.94 (1), p.1-19
Hauptverfasser: Holmes, Thomas J., Lee, Sanghoon
Format: Artikel
Sprache:eng
Schlagworte:
Agricultural industry
Agrology
Crop density
Crop economics
Crop rotation
Crops
Density
Economic models
Economies of density
Economies of scale
Estimation
Farmers
Planting
Soil quality
Soil resources
Studies
U.S.A
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Beschreibung
Zusammenfassung:We estimate the factors determining specialization of crop choice at the level of individual fields, distinguishing between the role of natural advantage (soil characteristics) and economies of density (scale economies achieved when farmers plant neighboring fields the same). Using rich geographic data from North Dakota, including new data on crop choice collected by satellite, we estimate a model of how a farmer plants adjacent fields under the farmer's control. We find planting decisions on a field are heavily dependent on the soil characteristics of adjacent fields. Through this relationship, we back out the structural parameters of economies of density.
ISSN:0034-6535
1530-9142
DOI:10.1162/REST_a_00149