RT Journal Article
SR Electronic
T1 Multiple Herbicide Use in Cropland: A Discrete-Continuous Model for Stated Choice Data
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 355
OP 375
DO 10.3368/le.98.2.092520-0150R1
VO 98
IS 2
A1 Andrea Pellegrini
A1 John Rose
A1 Riccardo Scarpa
YR 2022
UL http://le.uwpress.org/content/98/2/355.abstract
AB Using a random utility consistent discrete-continuous model, we analyze decisions by a sample of Australian farmers on the mix of herbicides and their intensity of use. The proposed model is flexible and even accommodates decisions concerning a single herbicide. We use a sequential quadratic programming-based forecasting approach to predict optimal herbicide types and allocations. Structural estimates are used to forecast how price changes affect herbicide demand. The forecasting approach allows for calibration of alternative specific constants to reproduce existing brand market shares.