Dynamic Discrete Choice Estimation of Agricultural Land Use

摘要: I develop a new framework for analyzing land use change with dynamically optimizing landowners. My empirical approach allows unobservable heterogeneity and avoids the burden of explicitly modeling evolution market-level state variables like input output prices. Using rich data set on in United States, estimate relatively large long-run cropland-price elasticity 0.3. Compared to static estimates using same data, my dynamic suggest that biofuels production leads dramatically more substantially smaller price increases long run.