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A Tobit model of the demand for farmland



A Tobit model of the demand for farmland



Southern journal of agricultural economics 13(2): 105-109



This study investigates the demand for farmland, while accounting for the process underlying the decision to purchase farmland. The failure to account for the initial decision to purchase or not can lead to bias in estimated demand parameters. A theoretical and empirical model of farmland purchase behavior that accounts for the initial purchase decision is considered. A Tobit model is employed to account for both the initial decision to purchase farmland and the amount of farmland purchased by the individual.

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Accession: 000804044

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