Valuing Risk Tradeoffs and Voluntary Insecticide Reduction

Abstract:     
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

working papers series