Hostname: page-component-586b7cd67f-r5fsc Total loading time: 0 Render date: 2024-11-27T18:52:30.308Z Has data issue: false hasContentIssue false
  • English
  • Français

Investment Behavior and Energy Conservation

Published online by Cambridge University Press:  10 May 2017

Eddy L. LaDue ,
Lynn H. Miller  and
Joseph H. Kwiatkowski
Eddy L. LaDue
Affiliation:
Department of Agricultural Economics, Cornell University
Lynn H. Miller
Affiliation:
Department of Agricultural Economics, Cornell University
Joseph H. Kwiatkowski
Affiliation:
Department of Agricultural Economics, Cornell University
Get access

Abstract

Binary logit and bivariate probit models were used to investigate the investment behavior of farmers relative to two energy-conserving assets, heat-recovery systems and precoolers. The bivariate probit procedure was useful in correcting for self-selectivity bias. Holdout samples and cross-validation procedures were used to develop true model statistics. Farm size, educational level of the operator, and the type of milking system in use were the important factors influencing investment behavior.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 19 , Issue 2 , October 1990 , pp. 99 - 108
Copyright
Copyright © 1990 Northeastern Agricultural and Resource Economics Association 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

This research was supported by the Niagara Mohawk Power Corporation under a contract with Cornell University and by Cornell University Agricultural Experiment Station Hatch Project 121–413, U.S. Department of Agriculture.

References

Beaver, W. H. “Financial Ratios as Predictors of Failure.” Journal of Accounting Research, Supplement (1966):71–127.Google Scholar
Brase, B. T., and LaDue, E. L. “Farmer Investment Behavior: A Review of Literature.” Department of Agricultural Economics Research Bulletin 89–5. Cornell University, March 1988.Google Scholar
Dixon, B. L., Hill, L. D., and Saffell, M.S. “The Relationship of Farmers’ Intentions to Purchase and Their Actual Purchases of Metal Bin Grain Storages.” North Central Journal of Agricultural Economics 2, no. 1 (1980):61–68.Google Scholar
Efron, B. “Estimating the Error Rate of a Prediction Rule: Improvement on Cross-Validation.” Journal of the American Statistical Association 78, no. 382 (June 1983).Google Scholar
Frydman, H., Altman, E. I., and Kao, D. L. “Introducing Recursive Partitioning for Financial Classification: The Case of Financial Distress.” The Journal of Finance 40, no. 1(March 1985):269–90.Google Scholar
Funk, T. F. “Farmer Buying Behavior: An Integrated Review of Literature.” Working Paper AE-72–16. University of Guelph, 1972.Google Scholar
Greene, W. H. LIMDEP, Version 5. New York: William H. Greene, 1988.Google Scholar
Gustafson, C. R., Barry, P. J., and Sonka, S. T. “Machinery Investment Decisions by Cash Grain Farmers in Illinois.” Paper presented to NC-161 Regional Research Project, Evaluating Financial Markets for Agriculture, St. Paul, MN, 7–8 October 1986.Google Scholar
Hanley, J. A., and McNeil, B. J. “The Meaning and Use of the Area under the Receiver Operating Characteristics Curve.” Diagnostic Radiology 143, no. 1 (1982):29–36.Google Scholar
Harrell, F. E. Jr., “The Logist Procedure.” In SUGI Supplemental Library User's Guide, Version 5 Edition, chapter 23. Cary, NC: SAS Institute, Inc., 1986.Google Scholar
Heckman, J. J. “Sample Selection Bias as a Specification Error.” Econometrica 47, no. 1 (January 1979):153–61.Google Scholar
Hill, L. D., and Kau, P. “Application of Multivariate Probit to a Threshold Model of Grain Dryer Purchasing Decisions.” American Journal of Agricultural Economics 65, no. 3 (1973):553–57.Google Scholar
Johnson, T. G., Brown, W. J., and O'Grady, K. “A Multivariate Analysis of Factors Influencing Farm Machinery Purchase Decisions.” Western Journal of Agricultural Economics 10, no. 2 (1985):294–306.Google Scholar
Kelleher, M. J., and Bills, N. L. “Statistical Summary of the 1987 Farm Management and Energy Survey.” Department of Agricultural Economics Research Bulletin 89-3. Cornell University, February 1989.Google Scholar
LaDue, E. L., and Kwiatkowski, J. H. “An Analysis of the Investment Related Characteristics of New York Farmers.” Department of Agricultural Economics Research Bulletin 89-18. Cornell University, September 1989.Google Scholar
LaDue, E. L., Miller, L. H., and Kwiatkowski, J. H. “An Analysis of Alternate Micro Level Models of Investment Behavior.” Department of Agricultural Economics Working Paper 89-11. Cornell University, December 1989.Google Scholar
Maddala, G. S. “Limited-Dependent and Qualitative Variables in Econometrics.” Econometric Society Monographs, no. 3. Cambridge: Cambridge University Press, 1983.Google Scholar
Picard, R. R., and Cook, R. D. “Cross-Validation of Regression Models.” Journal of the American Statistical Association 79, no. 387 (1984):575–83.Google Scholar
Smith, S. F., Knoblauch, W. A., and Putnam, L. D. “Dairy Farm Business Summary, New York.” Department of Agricultural Economics Research Bulletin 88-8. Cornell University, July 1988 and prior issues.Google Scholar
VanDeVen, W. P. P. M., and VanPraag, M. S. B. “The Demand for Deductibles in Private Health Insurance, A Probit Model with Sample Selection.” Journal of Econometrics 17 (1981):229–52.Google Scholar