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How big is your neighbourhood? Spatial implications of market participation among Filipino smallholders.

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Title How big is your neighbourhood? Spatial implications of market participation among Filipino smallholders.
 
Creator Holloway, G.J.
Lapar, Ma. Lucila
 
Description We present a procedure for estimating two quantities defining the spatial externality in discrete-choice commonly referred to as 'the neighbourhood effect'. One quantity, the propensity for neighbours to make the same decision, reflects traditional preoccupations; the other quantity, the magnitude of the neighbourhood itself, is novel. Because both quantities have fundamental bearing on the magnitude of the spatial externality, it is desirable to have a robust algorithm for their estimation. Using recent advances in Bayesian estimation and model comparison, we devise such an algorithm and illustrate its application to a sample of northern-Filipino smallholders. We determine that a significant, positive, neighbourhood effect exists; that, among the 12 geographical units comprising the sample, the neighbourhood spans a three-unit radius; and that policy prescriptions are significantly altered when calculations account for the spatial externality.
 
Date 2010-03-17T18:19:29Z
2010-03-17T18:19:29Z
2007-01-15
 
Type Journal Article
 
Identifier Holloway, G.; Lapar, M.L.A. 2007. How big is your neighbourhood? Spatial implications of market participation among Filipino smallholders. Journal of Agricultural Economics. 58(1): 37-60.
https://hdl.handle.net/10568/820
 
Language en
 
Source Journal of Agricultural Economics