Testing for information asymmetries in voluntary conservation contracts

Ricardo Smith ()
Additional contact information
Ricardo Smith: Division of Economics, CIDE

No DTE 402, Working Papers from CIDE, División de Economía

Abstract: We use data from a Maryland farm survey and a multivariate switching regression model with endogenous switching to investigate the effects of information asymmetries on conservation cost sharing contracts. Our estimations indicate that the role that asymmetries of information play in the impact that cost-sharing programs have on conservation effort depends on the type of practice under analysis. After controlling for observables (including history of cost-share awarding), we found no evidence of detrimental effects from information asymmetries neither on the acreage under permanent vegetative cover nor on the level of use of conservation cropping practices. As a matter of fact, information asymmetries have no statistically significant impact on permanent vegetative cover, while their impact on conservation cropping is both positive and significant.

Keywords: information asymmetries; voluntary conservation contracts; Maryland farm survey (search for similar items in EconPapers)
JEL-codes: D82 D86 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2007-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.economiamexicana.cide.edu/RePEc/emc/pdf/DTE/DTE402.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emc:wpaper:dte402

Access Statistics for this paper

More papers in Working Papers from CIDE, División de Economía Contact information at EDIRC.
Bibliographic data for series maintained by Mateo Hoyos ().