Movers and Stayers in the Farming Sector: Another Look at Heterogeneity in Structural Change

Legrand Saint-Cyr and Laurent Piet ()

No 183068, 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia from European Association of Agricultural Economists

Abstract: The Markov chain model (MCM) has become a popular tool in the agricultural economics literature to study the impact of various drivers on the structural change of farms, including public support. In order to relax the process-homogeneity assumption underlying the MCM, we consider a mixture of two types of agents, the ‘stayers’ who always remain in their initial size category, and the ‘movers’ who follow a first-order Markovian process. An empirical application to a panel of commercial French farms over 2000-2012 shows that the mover-stayer model (MSM) is a better modeling framework to recover the underlying transition probability matrix.

Keywords: Institutional; and; Behavioral; Economics (search for similar items in EconPapers)
Pages: 13
Date: 2014-08
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae14:183068

DOI: 10.22004/ag.econ.183068

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