Integrating Technology Traits and Producer Heterogeneity: A Mixed-Multinomial Model of Genetically Modified Corn Adoption

Pilar Useche, Bradford L. Barham and Jeremy D. Foltz

American Journal of Agricultural Economics, 2009, vol. 91, issue 2, pages 444-461

Abstract: This article proposes a model of technology adoption that integrates demand for individual traits of new technologies with the potential for heterogeneity based on farm and farmer characteristics. The model is applied to recent genetically modified corn adoption data from Minnesota and Wisconsin farmers, using a mixed-multinomial logit (MMNL) model to estimate the effects of traits and farm and farmer characteristics on adoption outcomes. This approach allows explicit recovery of estimates of farmers' shadow prices for individual technology traits. Results show the importance of producer and regional heterogeneity in preferences for seed traits. Copyright Copyright 2009 Agricultural and Applied Economics Association.

Date: 2009

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American Journal of Agricultural Economics is edited by Peter Berck, Robert J. Myers, Ian M. Sheldon and B. Wade Brorsen

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