Heterogeneity in the agricultural sector and its implications for modeling viability

Cecilia Alexandri (), Corina Saman () and Bianca Pauna ()
Additional contact information
Cecilia Alexandri: Institute of Agricultural Economics, Romanian Academy.
Corina Saman: Institute for Economic Forecasting, Romanian Academy. Institute of Agricultural Economics, Romanian Academy.
Bianca Pauna: Centre for Macroeconomic Modelling, National Institute of Economic Research, Romanian Academy.

Journal for Economic Forecasting, 2024, issue 4, 144-157

Abstract: The paper investigates the viability of crop farms in Romania, an important topic because in rural regions agriculture is the main activity of a large part of the labour force and plays an important role in food security. In the literature, only trends and changes in viability as a result of policy at the European level are analysed. This study advances the literature by identifying the determinants of viability with a new model (correlated random effects ordered probit model) that intrinsically captures unobserved heterogeneity of farms. The results show that the viability of crop farms dependents incrementally on the volume of resources (scale). The paper shows that there is scope to increase farms’ income if some changes are made in the structure of production factors (land, labor).

Keywords: Viability; Crop Farms; Correlated Random Effects Ordered Probit Model (search for similar items in EconPapers)
JEL-codes: C21 C51 D22 Q12 Q18 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ipe.ro/ftp/RePEc/rjef4_2024/rjef4_2024p144-157.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:rjr:romjef:v::y:2024:i:4:p:144-157

Access Statistics for this article

Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman

More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ( this e-mail address is bad, please contact ).