Movers and stayers in farming

What is it about?

Farmers may behave differently since they face different socio-economic and environmental context. This paper investigates the impact of farm heterogeneity on structural change observed at an aggregate level. We have shown that ignoring heterogeneity in modelling farm size dynamics leads to overestimate mobility of farms.

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Why is it important?

We are the first to take into account for farm unobserved heterogeneity in modelling structural change in farming, to the best of our knowledge. Our findings show that accounting for heterogeneity in the transition process of farms leads to better represent farm size dynamics and thus to better long-term projections of farm size distribution.