Search results

1 – 10 of over 1000
Book part
Publication date: 1 December 2016

R. Kelley Pace and James P. LeSage

We show how to quickly estimate spatial probit models for large data sets using maximum likelihood. Like Beron and Vijverberg (2004), we use the GHK…

Abstract

We show how to quickly estimate spatial probit models for large data sets using maximum likelihood. Like Beron and Vijverberg (2004), we use the GHK (Geweke-Hajivassiliou-Keane) algorithm to perform maximum simulated likelihood estimation. However, using the GHK for large sample sizes has been viewed as extremely difficult (Wang, Iglesias, & Wooldridge, 2013). Nonetheless, for sparse covariance and precision matrices often encountered in spatial settings, the GHK can be applied to very large sample sizes as its operation counts and memory requirements increase almost linearly with n when using sparse matrix techniques.

Details

Spatial Econometrics: Qualitative and Limited Dependent Variables
Type: Book
ISBN: 978-1-78560-986-2

Keywords

Open Access
Article
Publication date: 17 May 2021

Kimberly Lynn Jensen, Karen Lewis DeLong, Mackenzie Belen Gill and David Wheeler Hughes

This study aims to determine whether consumers are willing to pay a premium for locally produced hard apple cider and examine the factors influencing this premium. This…

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Abstract

Purpose

This study aims to determine whether consumers are willing to pay a premium for locally produced hard apple cider and examine the factors influencing this premium. This study examines the influence of hard apple cider attributes and consumer characteristics on consumer preferences for local hard apple cider.

Design/methodology/approach

Data from a 2019 survey of 875 Tennessee consumers regarding their preferences for a local hard apple cider were obtained. Probit estimates were used to calculate the premium consumers were willing to pay for a locally made hard apple cider and factors influencing this premium. A multivariate probit was used to ascertain factors influencing the importance of attributes (e.g. heirloom apples, sweetness/dryness, sparking/still and no preservatives added) on local hard apple cider preference.

Findings

Consumers would pay a $3.22 premium for local hard apple cider compared with a $6.99 reference product. Local foods preferences, urbanization, weekly purchases of other alcoholic beverages and shopping venues influenced premium amounts. Other important attributes were sweetness/dryness and no preservatives. Influence of consumer demographics suggests targeted marketing of local ciders could be successful.

Originality/value

Few studies examine consumer preferences for hard apple ciders. This study represents a cross-sectional analysis of the premium consumers would pay for local hard apple ciders and the importance of other hard apple cider attributes.

Details

International Journal of Wine Business Research, vol. 33 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 7 January 2014

Ariel Atzil and Eli Feinerman

– Enabling decision-makers in Israel to better assess the prospects of government policies aimed at changing inter-generation income distribution for the benefit of the retirees.

Abstract

Purpose

Enabling decision-makers in Israel to better assess the prospects of government policies aimed at changing inter-generation income distribution for the benefit of the retirees.

Design/methodology/approach

Based on a comprehensive data set, the paper utilizes multivariate ordered-probit regression for empirical investigation of the motivations for support between parents and children in Israel.

Findings

The main finding is that child-parent support in Israel is usually driven by a combination of exchange and altruistic motives, rather than altruism alone.

Practical implications

Child-parent support will not reduce the impact of governmental policies aimed at redistributing income among different generations. If the Government of Israel raises the income level of its citizens aged 65 and over, the improvement in this population's condition will most probably be bigger than that caused directly by the amount the government has added to their income.

Originality/value

Empirical evaluation of the motivations for support given by children to their retired parents in Israel. Israel is a multicultural, immigrant country, home to people originating from all over the world, which provides an interesting cross-cultural perspective. In addition, the underlying database used in this study includes much more information than most databases utilized by earlier studies.

Details

International Journal of Social Economics, vol. 41 no. 2
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 1 December 2016

Badi H. Baltagi, Peter H. Egger and Michaela Kesina

This paper formulates and analyzes Bayesian model variants for the analysis of systems of spatial panel data with binary-dependent variables. The paper focuses on cases…

Abstract

This paper formulates and analyzes Bayesian model variants for the analysis of systems of spatial panel data with binary-dependent variables. The paper focuses on cases where latent variables of cross-sectional units in an equation of the system contemporaneously depend on the values of the same and, eventually, other latent variables of other cross-sectional units. Moreover, the paper discusses cases where time-invariant effects are exogenous versus endogenous. Such models may have numerous applications in industrial economics, public economics, or international economics. The paper illustrates that the performance of Bayesian estimation methods for such models is supportive of their use with even relatively small panel data sets.

Details

Spatial Econometrics: Qualitative and Limited Dependent Variables
Type: Book
ISBN: 978-1-78560-986-2

Keywords

Article
Publication date: 23 June 2020

Michael K. Ndegwa, Apurba Shee, Calum G. Turvey and Liangzhi You

Drought-related climate risk and access to credit are among the major risks to agricultural productivity for smallholder farmers in Kenya. Farmers are usually…

Abstract

Purpose

Drought-related climate risk and access to credit are among the major risks to agricultural productivity for smallholder farmers in Kenya. Farmers are usually credit-constrained due to either involuntary quantity rationing or voluntary risk rationing. By exploiting randomized distribution of weather risk-contingent credit (RCC) and traditional credit, the authors estimate the causal effect of bundling weather index insurance to credit on uptake of agricultural credits among rural smallholders in Eastern Kenya. Further, the authors assess farmers' credit rationing, its determinants and effects on credit uptake.

Design/methodology/approach

The study design was a randomized controlled trial (RCT) conducted in Machakos County, Kenya. 1,170 sample households were randomly assigned to one of three research groups, namely control, RCC and traditional credit. This paper is based on baseline household survey data and the first phase of loan implementation data.

Findings

The authors find that 48% of the households were price-rationed, 41% were risk-rationed and 11% were quantity-rationed. The average credit uptake rate was 33% with the uptake of bundled credit being significantly higher than that of traditional credit. Risk rationing seems to influence the credit uptake negatively, whereas premium subsidies do not have any significant association with credit uptake. Among the socio-economic variables, training attendance, crop production being the main household head occupation, expenditure on food, maize labour requirement, hired labour, livestock revenue and access to credit are found to influence the credit uptake positively, whereas the expenditure on non-food items is negatively related with credit uptake.

Research limitations/implications

The study findings provide important insights on the factors of credit demand. Empirical results suggest that risk rationing is pervasive and discourages farmers to take up credit. The study results also imply that credit demand is inelastic although relatively small sample size for RCC premium subsidy groups may be a limiting factor to the authors’ estimation.

Originality/value

By implementing a multi-arm RCT, the authors estimate the factors affecting the uptake of insurance bundled agricultural credits along with eliciting credit rationing among rural smallholders in Eastern Kenya. This paper provides key empirical findings on the uptake of RCC and the effect of credit rationing on uptake of agricultural credits, a field which has been majorly theoretical.

Details

Agricultural Finance Review, vol. 80 no. 5
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 11 September 2017

Yan Li

The purpose of this paper is to examine whether people who engage in religious activities are more generous in terms of both religious and secular giving.

Abstract

Purpose

The purpose of this paper is to examine whether people who engage in religious activities are more generous in terms of both religious and secular giving.

Design/methodology/approach

Bivariate probit (BVP) and bivariate tobit (BVT) analyses show that religious people have a greater propensity to give and higher levels of giving to both religious and secular charitable organizations. The bivariate systems permit a test of the correlation across the different giving decisions, and the correlation between religious and secular giving is found to be highly significant.

Findings

Religiosity positively influences both religious and secular donations. After controlling for this correlation, the impacts of religiosity on religious and secular giving are more efficient estimates but smaller than expected.

Originality/value

As a result of these methodological shortcomings, the causal relationship between religiosity and charitable giving is far from clear. To overcome those problems, this study uses BVP and BVT models to control for the potential correlation between religious giving and secular giving by the same individual and then draws appropriate interpretations. This study adds a firmer theoretical foundation to the existing literature.

Details

International Journal of Social Economics, vol. 44 no. 9
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 6 October 2021

Comfort Love Naa Kwaale Quartey, James Osei Mensah, Fred Nimoh, Faizal Adams and Seth Etuah

The main purpose of this study was to assess constraints and determinants of pineapple farmers' choice of certification schemes in Ghana.

Abstract

Purpose

The main purpose of this study was to assess constraints and determinants of pineapple farmers' choice of certification schemes in Ghana.

Design/methodology/approach

A multistage sampling method was used to solicit data from 345 pineapple farmers from Eastern and Central regions of Ghana. Analytical techniques including descriptive statistics, four-point Likert scale index and multinomial logistic regression model (MNL) were used to analyze the data.

Findings

The four-point scale index shows that high renewal fee for certification schemes is the most important constraint facing certified farmers before high labor cost of production. The MNL model shows that both off-farm income and age negatively influenced farmers' choice of GlobalG.A.P scheme. However, household size had significant positive influence on farmers' choice of GlobalG.A.P and Organic schemes. Likewise, formal education had significant positive relationship with the choice of Fairtrade and Organic certification schemes while farming experience positively influenced organic scheme choice. On the other hand, premium price and extension services positively influenced the likelihood of choosing all the three certification schemes. Lastly, regional dummy only negatively influences the choice of organic certification schemes.

Research limitations/implications

This study contributes to the literature on certification schemes adopted by smallholder by analyzing the determinants and constraints of choice of scheme(s).

Originality/value

The study brings to bear the issues confronting smallholder pineapple farmers in the employment of certification schemes in developing countries, specifically Ghana.

Details

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

Keywords

Book part
Publication date: 13 December 2013

Bertrand Candelon, Elena-Ivona Dumitrescu, Christophe Hurlin and Franz C. Palm

In this article we propose a multivariate dynamic probit model. Our model can be viewed as a nonlinear VAR model for the latent variables associated with correlated binary…

Abstract

In this article we propose a multivariate dynamic probit model. Our model can be viewed as a nonlinear VAR model for the latent variables associated with correlated binary time-series data. To estimate it, we implement an exact maximum likelihood approach, hence providing a solution to the problem generally encountered in the formulation of multivariate probit models. Our framework allows us to study the predictive relationships among the binary processes under analysis. Finally, an empirical study of three financial crises is conducted.

Details

VAR Models in Macroeconomics – New Developments and Applications: Essays in Honor of Christopher A. Sims
Type: Book
ISBN: 978-1-78190-752-8

Keywords

Article
Publication date: 24 June 2020

Alhassan Abdul-Wakeel Karakara and Evans Osabuohien

This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.

Abstract

Purpose

This study aims to investigate how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria.

Design/methodology/approach

The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method.

Findings

The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on research and development (R&D), firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact the four types of innovations. Thus, the study recommends that policies should be geared towards making firms have more access to ICTs to enable them to be more innovative to serve clients and the economy.

Originality/value

This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely, Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 3
Type: Research Article
ISSN: 1750-6204

Keywords

Article
Publication date: 7 November 2016

Krishna P. Paudel, Nirmala Devkota and Ying Tan

The purpose of this paper is to address the issues of correlated events and individual heterogeneity in multiple best management practices (BMPs) adoption.

Abstract

Purpose

The purpose of this paper is to address the issues of correlated events and individual heterogeneity in multiple best management practices (BMPs) adoption.

Design/methodology/approach

The authors used survey data collected from broiler producers in Louisiana, USA. The authors estimated several duration models that either considered event dependence or heterogeneity or both.

Findings

Results from the conditional frailty model indicated that large farms adopt BMPs earlier, farmers who have been in broiler farming profession for a long time are late to adopt BMPs and more informed farmers, through contact with extension agents and education, are early adopters of BMPs.

Research limitations/implications

The limitation of this study is that the authors did not validate the robustness of the conditional frailty model using a more rigorous approach, such as empirical simulation method.

Practical implications

Many farmers do not adopt a new technology immediately after it becomes available. Duration models help to understand why farmers wait and how long they wait before adopting a new technology. In case of correlated events, where farmers adopt more than one technology, it is important to know the driving factors behind multiple technologies adoption. The findings from this study should help to properly target farmers to increase the adoption rate of a desired BMP.

Originality/value

This is the first study in agriculture technology adoption literature that uses a conditional frailty model to understand why farmers wait to adopt a new technology. This study also addresses both dependence in BMP adoption and heterogeneity in farmers’ quality that impact technology adoption.

Details

China Agricultural Economic Review, vol. 8 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

1 – 10 of over 1000