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1 – 10 of 196
Article
Publication date: 30 June 2020

Kwame Asiam Addey, John Baptist D. Jatoe and George Tsey-Mensah Kwadzo

The aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper…

Abstract

Purpose

The aim of this paper is to identify the factors that influence rice farmers' decisions to adopt crop insurance and premium payments (willingness to pay [WTP] amounts). The paper also demonstrates the usefulness of the complementary log-log (cloglog) truncated Poisson double-hurdle model as an alternative hurdle model.

Design/methodology/approach

The study first investigated the nature of the dependent variable, which had non-normal residuals and was overdispersed. The probit truncated normal regression double-hurdle model was tried but it failed the normality and homoscedasticity tests; hence, the cloglog truncated Poisson double-hurdle model was employed in the study.

Findings

An estimated 61% of respondents would purchase crop insurance, despite farmers not having prior experience with this product. Amongst others, the factors that influence insurance adoption amongst rice farmers are the share of rice in total income, reliability perception of crop insurance schemes and the probability of failure to achieve target yields. The latter helps the authors to address adverse selection, a central issue to the viability of such an insurance programme. The determinants of farmers' WTP are also identified.

Research limitations/implications

Sampling was limited to farmers using irrigation and living in one region of Ghana, which may limit the study’s wider applicability.

Originality/value

As far as the authors are aware, this study is the first to select the appropriate hurdle model based on established properties of the dependent variable on this topic – crop insurance decisions.

Details

Agricultural Finance Review, vol. 81 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 26 August 2014

Jingjing Wang, Yongfu Chen, Zhihao Zheng and Wei Si

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to…

Abstract

Purpose

The purpose of this paper is to investigate the determinants of pork consumption in urban western China and the different consumption patterns across income strata with respect to income elasticity and price elasticity of demand.

Design/methodology/approach

The double-hurdle model is fit to the household data of Sichuan and Xinjiang provinces which is from the National Bureau of Statistics urban household surveys.

Findings

The paper finds that consumers’ purchasing decisions regarding pork are related to both non-economic and economic factors. The results also indicate large differences among the determinants for decision of how much pork to buy across the three income strata. Low-income households have higher income elasticity than middle-income and high-income households. High-income and middle-income households’ level of pork consumption is more sensitive to pork price. High-income households have greater cross-price elasticity.

Originality/value

In the previous studies, the non-economic determinants of pork consumption have not been addressed, and neither does the issue of difference pork purchasing behavior across income strata for urban households in western China. So this study uses the double-hurdle model to investigate the determinants of pork consumption in urban western China.

Details

China Agricultural Economic Review, vol. 6 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 14 November 2016

Genanew Bekele, Reza H. Chowdhury and Ananth Rao

The purpose of this paper is to consider borrower-specific characteristics to understand the factors affecting both the probability and quantum of loan default by individual…

1286

Abstract

Purpose

The purpose of this paper is to consider borrower-specific characteristics to understand the factors affecting both the probability and quantum of loan default by individual borrowers under Islamic and conventional banking.

Design/methodology/approach

Borrower-specific characteristics that explain the probability of default may not necessarily be similar factors that determine the quantum of default. The authors therefore apply a Box-Cox double hurdle model to treat both the probability and quantum of default in a two-step approach. The authors also explain the differences in default risk and quantum of default between Islamic and conventional banking borrowers from their behavioral perspectives following the Sharia principles in financial transactions between lenders and borrowers. The authors use borrower-specific information of two separate bank branches of the United Arab Emirates that solely deal with either Islamic or conventional banking products.

Findings

The paper demonstrates that the probability of default and the quantum of default appear to be influenced by different set of client-specific factors. The results suggest that the probability of default does not vary significantly between Islamic and conventional banking borrowers. The evidence also shows that Islamic banking defaulters, compared to those in conventional banking, repay a large quantum of overdue when their financial leverage improves. However, they do not tend to reduce their outstanding quantum of overdue faster than conventional banking defaulters.

Research limitations/implications

Availability of data from only two bank branches may limit the explanatory power of empirical findings.

Practical implications

The study findings will enable the Islamic and conventional banks to appropriately address Basel Capital requirements based on the borrowers’ behavior.

Social implications

The study findings have the potential for Islamic and conventional financing institutions to be more flexible with equity in their lending practices.

Originality/value

Religious beliefs are crucial in borrower’s default behavior in Islamic banking.

Details

Review of Behavioral Finance, vol. 8 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 8 May 2018

Yongfu Chen, Wenbo Zhu and Ziyuan Chen

China is not only the biggest mutton consumer, but also the top mutton importer in the world. China’s urban households are becoming the key driving force behind a surge in mutton…

Abstract

Purpose

China is not only the biggest mutton consumer, but also the top mutton importer in the world. China’s urban households are becoming the key driving force behind a surge in mutton consumption. Therefore, the purpose of this paper is to investigate the determinants of mutton demand in urban China.

Design/methodology/approach

Based on a sample of 32,910 urban households across six provinces and autonomous regions, an inverse hyperbolic sine (IHS) double-hurdle model is estimated, by maximum likelihood estimation, to reveal the determinants of mutton consumption-at-home.

Findings

The empirical results indicate that, first, household income has a positive effect on mutton consumption, and higher income households have a higher income elasticity; second, wet weather increases probability, but reduces conditional level and unconditional level; finally, minority group households consume more mutton than Han group households.

Practical implications

It is necessary for policymakers to develop a long-term outlook in relation to the increase of China’s mutton appetite and to shift from a domestic perspective to a global one and develop diversified import strategies. Furthermore, policymakers require to make a practicable emergency preplan for tackling short-term agglomeration of demand for mutton, attributed to festivals, and religious events of a minority ethnic group.

Originality/value

This is a major work based on a large sample of 32,910 urban households conducted by the National Bureau of Statistics of China. This paper uses an IHS double-hurdle model to quantify the determinants of mutton consumption; it sheds light on the climatic, regional, and ethnic characteristics of mutton consumption in urban China.

Details

British Food Journal, vol. 120 no. 5
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 29 July 2020

Pham Tien Thanh and Pham Bao Duong

This article aims to examine the determinants of farmers' decisions on the adoption of modern rice varieties in two stages, including whether to adopt and, if so, how much to…

Abstract

Purpose

This article aims to examine the determinants of farmers' decisions on the adoption of modern rice varieties in two stages, including whether to adopt and, if so, how much to adopt.

Design/methodology/approach

The Double-Hurdle and Tobit models are applied to determine whether farmers make their two-stage decisions separately or simultaneously.

Findings

The findings reveal that farmers make their decisions on the probability of adoption and the intensity of adoption separately. Ethnicity, agricultural labor, land, rice production asset and non-farm self-employment are determinants of the farmers' decision on the adoption of modern rice varieties in both stages. Previous adoption, gender and an irrigation program only have a significant effect on the farmers' probability of adoption, while the market only significantly explains the farmers' decision on the intensity of adoption.

Research limitations/implications

Due to the unavailability of data, this article does not include the attributes of the rice varieties or farmers' perception about the varieties in the model.

Originality/value

The uniqueness of this research is that it attempts to examine the determinants of farmers' two-stage decisions on whether to adopt and how much to adopt the modern rice varieties by application of the Double-Hurdle method.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 11 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 20 September 2019

Joseph Ikechukwu Uduji, Elda Nduka Okolo-Obasi and Simplice Anutecia Asongu

The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on the enabling environment of smallholder farmers in sub-Saharan…

Abstract

Purpose

The purpose of this paper is to critically examine the impact of a growth enhancement support scheme (GESS) on the enabling environment of smallholder farmers in sub-Saharan Africa. The main aim is to investigate the impact of the GESS on access to rural farm credit and the transport cost of smallholder farmers in the agricultural transformation agenda (ATA) in Nigeria.

Design/methodology/approach

This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 1,200 were sampled across the six geopolitical zones of Nigeria.

Findings

The results from the use of a double-hurdle model indicate that the GESS has a significant impact on farmers’ access to credit, but does not significantly impact on rural farm transport cost, which subsequently influences the price of food in the country.

Practical implications

This implies that if the Federal Government of Nigeria is to work toward an ideal agricultural transformation agenda, transport networks should be closely aligned with the GESS priorities to provide connectivity to rural areas that provide most of the country’s agricultural output.

Originality/value

This research adds to the literature on the agricultural and rural development debate in developing countries. It concludes that embracing a rural finance and transportation infrastructure should form the foundation of the ATA in Nigeria, which, in turn, would provide a conducive environment for a more widespread rural economy in sub-Saharan Africa.

Article
Publication date: 5 March 2018

Andrea M. Leschewski, Dave D. Weatherspoon and Annemarie Kuhns

The purpose of this paper is to analyze households’ acquisition of healthy food away from home (FAFH) from restaurants. Specifically, determinants of households’ decision to…

Abstract

Purpose

The purpose of this paper is to analyze households’ acquisition of healthy food away from home (FAFH) from restaurants. Specifically, determinants of households’ decision to purchase healthy FAFH, the share of households’ FAFH expenditures allocated to healthy FAFH and the share of households’ FAFH calories obtained from healthy items are identified.

Design/methodology/approach

Using data from the National Household Food Acquisition and Purchase Survey, the UK Food Standards Agency’s Nutrient Profiling Model is used to classify the healthfulness of households’ FAFH purchases. A double-hurdle model is estimated to identify determinants of households’ decision to purchase healthy FAFH and the share of their FAFH expenditures and calories allocated to healthy items.

Findings

Households’ acquisition of healthy FAFH varies with income, food assistance, FAFH purchase frequency, dieting, restaurant type, household composition, region and season. There is little difference in the impact of these factors on healthy FAFH expenditure shares vs calorie shares, suggesting that healthy FAFH expenditures proxy the contribution of healthy FAFH to a households’ diet.

Practical implications

Results suggest that increased availability of healthy FAFH may need to be supplemented by targeted advertising and promotions, revisions to nutrition education programs, improved nutrition information transparency and value pricing in order to improve the dietary quality of households’ FAFH acquisitions.

Originality/value

This study is the first to analyze household acquisition of healthy FAFH.

Details

British Food Journal, vol. 120 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 November 2009

Ashok K. Mishra and Hung‐Hao Chang

The purpose of this paper is to empirically investigate the effects of farm income variability, farm size, and other socio‐demographic characteristics on the precautionary saving…

1249

Abstract

Purpose

The purpose of this paper is to empirically investigate the effects of farm income variability, farm size, and other socio‐demographic characteristics on the precautionary saving behavior of farm households and to estimate the influences of the identified factors on the amount of savings by self‐employed farm households.

Design/methodology/approach

Using 2003 Agricultural Resource Management Survey (ARMS) data and a Double‐Hurdle procedure, the likelihood and the amount of savings by farm households are estimated.

Findings

An important empirical finding of this study is that variability in income plays an important role in explaining precautionary savings of US farm households. Findings suggest that farm households facing higher income risk save more and accumulate more wealth. It is indicated that several farm, operator, household, and demographic attributes contribute to the precautionary savings of farm households. In particular, results show that educational attainment by operator and spouses have positive impact on the decision to save. In addition, results from this study show that farms that specialize in cash grain are likely to have precautionary savings.

Practical implications

Farm households today are virtually indistinguishable from non‐farm households in their levels of income and diversity of employment. As a result, government policies that influence general economic conditions have much more profound impacts on farm families. Federal support of farm income warrants continued scrutiny. This paper shows that greater income uncertainty increases savings and wealth of farm households. Therefore, farm policies that reduce income variability or uncertainty will have an impact on precautionary savings and wealth of farm households.

Originality/value

Several studies have investigated savings of households; however, these studies are limited to entire US population, older Americans, or non‐self‐employed individuals in the USA. Little is known about the savings behavior of self‐employed US farm households owing to a lack of household survey data and because of the complex relationship between the farm household and farm business in terms of resource allocation (both capital and labor).

Details

Agricultural Finance Review, vol. 69 no. 3
Type: Research Article
ISSN: 0002-1466

Keywords

Book part
Publication date: 12 April 2012

Péter Elek, János Köllő, Balázs Reizer and Péter A. Szabó

We estimate a double-hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the…

Abstract

We estimate a double-hurdle (DH) model of the Hungarian wage distribution assuming censoring at the minimum wage and wage under-reporting (i.e. compensation consisting of the minimum wage, subject to taxation and an unreported cash supplement). We estimate the probability of under-reporting for minimum wage earners, simulate their genuine earnings and classify them and their employers as ‘cheaters’ and ‘non-cheaters’. In the possession of the classification, we check how cheaters and non-cheaters reacted to the introduction of a minimum social security contribution base, equal to 200 per cent of the minimum wage, in 2007. The findings suggest that cheaters were more likely to raise the wages of their minimum wage earners to 200 per cent of the minimum wage, thereby reducing the risk of tax audit. Cheating firms also experienced faster average wage growth and slower output growth. The results suggest that the DH model is able to identify the loci of wage under-reporting with some precision.

Details

Informal Employment in Emerging and Transition Economies
Type: Book
ISBN: 978-1-78052-787-1

Keywords

Article
Publication date: 2 March 2021

Reuben Jagri Binpori, Dadson Awunyo-Vitor and Camillus Abawiera Wongnaa

In order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural…

Abstract

Purpose

In order to improve access to resources for smallholder farmers, efforts are being made to promote contract farming in Ghana. This is seen as a strategy to increase agricultural productivity of farmers, give better market access and guarantee adequate supply of raw materials to agro-based industries. However, the challenge is whether contract farming leads to improvement in food security status of farmers. The study therefore seeks to explore to what extent farmers' food security status is influenced by their participation in contract farming activities.

Design/methodology/approach

Using Cragg's double-hurdle model to analyse participation in contract farming, the authors control for selection bias using propensity score matching applied to a data set of 336 observations to examine the impact of contract farming on the food security levels of rice farmers in Ghana.

Findings

The results of this study show that yield of paddy and the wealth of the farmer are the main factors that influence the quantity of paddy rice to be contracted in contract farming arrangements. This study also finds that participation in contract farming will increase food security by 109%. In conclusion, contract farming has a significant positive impact on the farmers' food security status.

Originality/value

Agricultural policies and rural development initiatives supporting the promotion and expansion of contract farming should be pursued to persuade more farmers to produce under contract farming agreements.

Details

World Journal of Science, Technology and Sustainable Development, vol. 18 no. 2
Type: Research Article
ISSN: 2042-5945

Keywords

1 – 10 of 196