Modeling Semi-Subsistence and Commercial Land-Use Decisions in an Agricultural Frontier of Southern Mexico: A Switchin regrssion Approach

Abstract

We analyze the consequences of imperfect output markets for the land-use decisions of semi-subsistence farmers in an agricultural frontier of southern Mexico. Our approach is motivated by previous applications of the agriculture household model establishing that the farm household´s model estabblishing that the farm household´s production and consumption decisions are analytically non-separable when markets are not used. Econometric results generated by a switching regression model suggest the importance of distinguishing the discrete choice of market participation from that of area cultivated.