Stochastic Rangeland Use Under Capital Constraints

13 Pages Posted: 24 Apr 2020

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

Emilio A. Laca

University of California, Davis

Multiple version iconThere are 2 versions of this paper

Date Written: August 2007

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.

Keywords: extensive livestock production, Kazakhstan, stochastic dynamic programming, transition economies

Suggested Citation

Kobayashi, Mimako and Howitt, Richard E. and Jarvis, Lovell S. and Laca, Emilio A., Stochastic Rangeland Use Under Capital Constraints (August 2007). American Journal of Agricultural Economics, Vol. 89, Issue 3, pp. 805-817, 2007, Available at SSRN: https://ssrn.com/abstract=3583724 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

540 Alumni Ln
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

Downloads
1
Abstract Views
97
PlumX Metrics