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Valuing Risk Tradeoffs and Voluntary Insecticide Reduction

16 Pages Posted: 23 May 1997  

Luanne Lohr

University of Georgia

Timothy A. Park

Economic Research Service, USDA

Leon Higley

University of Nebraska at Lincoln - College of Agricultural Sciences and Natural Resources

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.

JEL Classification: Q16

Suggested Citation

Lohr, Luanne and Park, Timothy A. and Higley, Leon, Valuing Risk Tradeoffs and Voluntary Insecticide Reduction. Available at SSRN: https://ssrn.com/abstract=48580 or http://dx.doi.org/10.2139/ssrn.48580

Luanne Lohr (Contact Author)

University of Georgia ( email )

Athens, GA 30602-7509
United States
706-542-0847 (Phone)

Timothy A. Park

Economic Research Service, USDA ( email )

Washington, DC 22207
United States
(202)694-5446 (Phone)

Leon Higley

University of Nebraska at Lincoln - College of Agricultural Sciences and Natural Resources ( email )

Lincoln, NE
United States

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