Assessing structural change in French agriculture with a parametric Markov chain model
2015
Piet, Laurent
The Markov chain model (MCM) has become a popular tool in the agricultural economics literatureto explain the past evolution of and simulate the future developments in the number and sizedistribution of farms. In this paper, I show that the way MCMs have been implemented byagricultural economists so far suffers from the fact that transition probabilities are estimated asalmost independent variables (up to adding-up to unity constraints). The alternative parametricMCM I propose addresses the deriving issues since (i) it is parsimonious in terms of parameters; (ii)it can be estimated with simple econometric techniques; (iii) it reveals detailed information on thestructural change processes at hand. To demonstrate its effectiveness, the model is applied to theFrench strand of the farm accounting data network (FADN) for the period 2000-2012.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by Institut national de la recherche agronomique