Double Hurdle Model

Jones, Andrew M.

doi:10.1002/9781118445112.stat08074

Cited by 2 publications

(2 citation statements)

References 40 publications

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“…The hurdles involve zeros because some fishers do not sell fish catch through fish mothers at all. The DH model addresses the zero outcomes arising from the fishers' deliberate decisions, and it is a more general and flexible model than other models such as the Tobit model [18] by allowing separate stochastic processes for the incidence and intensity of sales [19]. The DH model is commonly applied to market participation studies [17,[20][21][22][23][24][25].…”

Section: Modeling Framework and Empirical Specificationsmentioning

confidence: 99%

Determinants of Catch Sales in Ghanaian Artisanal Fisheries

Quagrainie¹,

Chu

2019

Sustainability

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The study examined the determinants of catch sales of artisanal fishers through wealthy middle women in fishing communities of Ghana, often known as fish mothers or “fish mongers”. The effects of selected variables were examined with a double hurdle model. Self-financing was found to negatively affect the fishers’ sale of fish catch through fish mothers. The fishers were 19% less likely to sell to fish mothers if they self-finance, and that self-financing will result in a 10% downward unconditional change on the percentage of fish sold to the fish mothers. Factors that positively influenced the sale of fish catch through the fish mothers were price, percentage of high value fishes, size of boat, fishing experience, and number of fishing trips conducted in a year. The estimated average partial effects of boat size had the strongest effect with about 146% and 91% change, respectively on conditional and unconditional effect on the percentage of catch sales sold through the fish mothers. Overall, the study shows that long-term consistent economic and investment considerations such as investing in larger boats are important drivers for fishers’ choice of selling catches through fish mothers. The main implication of the results is that fishers need some economic leverage such as access to formal capital and financial resources to incentivize them to exercise control over their marketing activities so that they can receive a higher profit from their fishing operations. This is important for the sustainability of coastal fisheries communities and the sector as a whole. Artisanal fishers need resources such as low interest loans and market information systems that will enable them to negotiate prices for their fish catch with fish mothers.

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Section: Modeling Framework and Empirical Specificationsmentioning

confidence: 99%

Determinants of Catch Sales in Ghanaian Artisanal Fisheries

Quagrainie¹,

Chu

2019

Sustainability

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“…We use the split population survival model (Schmidt and Witte, 1989;Jones and Yen, 2000;Smith, 2002) to examine jointly both the probability of loan default and the timing of such default. In the following equation, D will take a value of one for borrowers who eventually default on the loan and zero for borrowers who do not default:…”

Section: The Basic Survival Modelmentioning

confidence: 99%

FSA farm loan repayment under economic recession and drought conditions

Escalante

Song

Dodson

2016

AFR

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Purpose The purpose of this paper is to analyze the repayment records of Farm Service Agency (FSA) borrowers in two distinct US farming regions that have been experienced serious drought conditions even as the US economy was going through a recession. The analysis will identify factors that significantly influence both the probability of FSA borrowers’ survival (capability to remain in good credit standing) and temporal endurance (or length of period of good standing with creditor). Design/methodology/approach This analysis utilizes a data set of farm borrowers of the Farm Service Agency that regular farm lenders have classified as “marginal” relative to other borrowers. The research goal is addressed by confining this study’s regional focus to the Southeast and Midwest that have both dealt with financial stress arising from abnormal natural and economic conditions prevailing during the same time period. A split population duration model is employed to separately identify determinants of the probability and duration of survival (condition of good credit standing). Findings This study’s results indicate that larger loan balances, declining commodity prices, and the severity of drought conditions have adversely affected both the borrowing farms’ probability of survival and temporal endurance in terms of maintaining non-delinquent borrower standing. Notably, Midwestern farms have been relatively less affected by drought conditions compared to Southeastern farms. This study’s results validate the contention that the farms’ capability to survive and the duration of their survival can be attributed to differences in regional resource endowments, farming activities, and business structures. Originality/value This study’s analytical framework departs from the basic duration model approach by considering temporal endurance, in addition to survival probability analysis. This study’s original contributions are enhanced by its specific focus on the contrasting farm business structures and operating environments in the Midwest and Southeast regions.

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Double Hurdle Model

Cited by 2 publications

References 40 publications

Determinants of Catch Sales in Ghanaian Artisanal Fisheries

Determinants of Catch Sales in Ghanaian Artisanal Fisheries

FSA farm loan repayment under economic recession and drought conditions

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