Stochastic Rangeland Use Under Capital Constraints

Posted: 23 Jul 2007

See all articles by Mimako Kobayashi

Mimako Kobayashi

University of California, Davis

Richard E. Howitt

University of California, Davis

Lovell S. Jarvis

University of California, Davis - Department of Agricultural and Resource Economics

Emilio A. Laca

University of California, Davis

Multiple version iconThere are 2 versions of this paper

Abstract

The stocking density on Kazakhstan's extensive rangelands is well below traditional levels. To analyze dynamic flock performance, we develop a stochastic dynamic programming model for livestock systems with stochastic forage production. The model contains continuous five state and 12 control variables, allowing improved characterization of the biophysical relationships and economic tradeoffs inherent in such systems. Most Kazakhstan herders have restricted access to capital. The model indicates that the cost of capital strongly affects flock size and productivity. We conclude that capital constraints are important to explaining the current low stocking density. Improving capital markets in rural areas warrants policy attention.

Suggested Citation

Kobayashi, Mimako and Howitt, Richard E. and Jarvis, Lovell S. and Laca, Emilio A., Stochastic Rangeland Use Under Capital Constraints. American Journal of Agricultural Economics, Vol. 89, No. 3, pp. 805-817, August 2007, Available at SSRN: https://ssrn.com/abstract=1002130 or http://dx.doi.org/10.1111/j.1467-8276.2007.00981.x

Mimako Kobayashi (Contact Author)

University of California, Davis ( email )

One Shields Avenue
Apt 153
Davis, CA 95616
United States

Richard E. Howitt

University of California, Davis ( email )

One Shields Avenue
Department of Agricultural and Resource Economics
Davis, CA 95616
United States
(530) 752-1521 (Phone)

Lovell S. Jarvis

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States

Emilio A. Laca

University of California, Davis ( email )

One Shields Avenue
Apt 153
Davis, CA 95616
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
502
PlumX Metrics