Estimating the effects of credit constraints on productivity of Peruvian agriculture
This paper proposes an estimator for the endogenous switching regression models with fixed effects. The decision to switch from one regime to the other may depend on unobserved factors, which would cause the state, such as being credit constrained, to be endogenous. Our estimator allows for this end...
| Main Authors: | , , |
|---|---|
| Format: | Journal Article |
| Language: | Inglés |
| Published: |
MDPI
2024
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/177085 |
| _version_ | 1855539013974228992 |
|---|---|
| author | Woutersen, Tiemen Hauck, Katherine Khandker, Shahidur R. |
| author_browse | Hauck, Katherine Khandker, Shahidur R. Woutersen, Tiemen |
| author_facet | Woutersen, Tiemen Hauck, Katherine Khandker, Shahidur R. |
| author_sort | Woutersen, Tiemen |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper proposes an estimator for the endogenous switching regression models with fixed effects. The decision to switch from one regime to the other may depend on unobserved factors, which would cause the state, such as being credit constrained, to be endogenous. Our estimator allows for this endogenous selection and for conditional heteroscedasticity in the outcome equation. Applying our estimator to a dataset on the productivity in agriculture substantially changes the conclusions compared to earlier analysis of the same dataset. Intuitively, the reason that our estimate of the impact of switching between states is smaller than previously estimated is that we captured the selection issue: switching between being credit constrained and credit unconstrained may be endogenous to farm production. In particular, we find that being credit constant has the substantial effect of reducing yield by 11%, but not the previously estimated very dramatic effect of reducing yield by 26%. |
| format | Journal Article |
| id | CGSpace177085 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | MDPI |
| publisherStr | MDPI |
| record_format | dspace |
| spelling | CGSpace1770852025-12-08T10:29:22Z Estimating the effects of credit constraints on productivity of Peruvian agriculture Woutersen, Tiemen Hauck, Katherine Khandker, Shahidur R. credit agriculture regression analysis models This paper proposes an estimator for the endogenous switching regression models with fixed effects. The decision to switch from one regime to the other may depend on unobserved factors, which would cause the state, such as being credit constrained, to be endogenous. Our estimator allows for this endogenous selection and for conditional heteroscedasticity in the outcome equation. Applying our estimator to a dataset on the productivity in agriculture substantially changes the conclusions compared to earlier analysis of the same dataset. Intuitively, the reason that our estimate of the impact of switching between states is smaller than previously estimated is that we captured the selection issue: switching between being credit constrained and credit unconstrained may be endogenous to farm production. In particular, we find that being credit constant has the substantial effect of reducing yield by 11%, but not the previously estimated very dramatic effect of reducing yield by 26%. 2024-12 2025-10-14T17:55:06Z 2025-10-14T17:55:06Z Journal Article https://hdl.handle.net/10568/177085 en Open Access MDPI Woutersen, Tiemen; Hauck, Katherine; and Khandker, Shahidur R. 2024. Estimating the effects of credit constraints on productivity of Peruvian agriculture. Econometrics 12(4): 27. https://doi.org/10.3390/econometrics12040027 |
| spellingShingle | credit agriculture regression analysis models Woutersen, Tiemen Hauck, Katherine Khandker, Shahidur R. Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title | Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title_full | Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title_fullStr | Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title_full_unstemmed | Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title_short | Estimating the effects of credit constraints on productivity of Peruvian agriculture |
| title_sort | estimating the effects of credit constraints on productivity of peruvian agriculture |
| topic | credit agriculture regression analysis models |
| url | https://hdl.handle.net/10568/177085 |
| work_keys_str_mv | AT woutersentiemen estimatingtheeffectsofcreditconstraintsonproductivityofperuvianagriculture AT hauckkatherine estimatingtheeffectsofcreditconstraintsonproductivityofperuvianagriculture AT khandkershahidurr estimatingtheeffectsofcreditconstraintsonproductivityofperuvianagriculture |