Valuing Risk Tradeoffs and Voluntary Insecticide Reduction
University of Georgia
Timothy A. Park
University of Georgia - Department of Agricultural & Applied Economics
University of Nebraska at Lincoln - College of Agricultural Sciences and Natural Resources
Fixed search costs associated with locating and purchasing pecans invalidate the Tobit model. Factors such as perceived quality, ease of purchase, and familiarity with marketing outlets influence the fixed costs of pecan purchases. These factors have differing impacts on the probability of purchasing and the amount purchased based on the Heckman model. Failure to apply self- selectivity corrections produces misleading assessments of key variables influencing pecan purchases.
Number of Pages in PDF File: 16
JEL Classification: Q16
Date posted: May 23, 1997
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