Off-farm income and farm capital accumulation: a farm-level data analysis

This paper test farm households' joint decisions to work off-farm, and their investments in farm capital respectively, using a farm level data set involving 252 sole proprietorships in Southwestern Minnesota. Time series are collected from the period 1993 through 2002 and estimation is done using a recursive two-step simultaneous censored equations model. Strong support is found for endogeneity of farm capital in an off-farm reliance model as well as for of off-farm income reliance in a farm capital model. In addition, evidence of true state dependence in off-farm income reliance is supported by the data.


Subject(s):
Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/21480
Total Pages:
23
Note:
Replaced with revised version of paper 06/30/06.
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2017-08-24

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