A double-hurdle model estimation of cocoa farmers’ willingness to pay for crop insurance in Ghana
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"A double-hurdle model estimation of..." refers background or methods in this paper
...For such a case, it is possible respondents (farmers) cannot give a number representing their WTP but may recognize the fact that they have a positive WTP. Cragg (1971) suggested a double-hurdle model in which adoption behavior consists of two decisions: an adoption decision, which is a binary choice, modelled using a Logit; and a WTP amount decision, which is a truncated regression model....
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...Various studies have used either the double-hurdle model or the Heckman’s sample selection model in determining the willingness to pay for insurance (Cragg 1971; Norris and Batie 1987; Gabre-Madhin et al. 2003; Sindi 2008; Wodjao 2008; Yu and Abler 2010, Musah 2013)....
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...Various studies have used either the double-hurdle model or the Heckman’s sample selection model in determining the willingness to pay for insurance (Cragg 1971; Norris and Batie 1987; Gabre-Madhin et al. 2003; Sindi 2008; Wodjao 2008; Yu and Abler 2010, Musah 2013). In this study, the double-hurdle model was adopted based on its advantage over the Heckman’s sample selection model. The Heckman sample selection model assumes that no zero response will be present in the second hurdle of the analysis once the first hurdle is passed whiles the double-hurdle on the other hand recognizes the possibility of zero observations in the second stage (Wodjao 2008). The possibility of zero response is as a result of the fact that the cocoa farmer may refuse to answer due to a lack of knowledge or how complex the questions are perceived to be. In addition, some cocoa farmers may only have partial information concerning their willingness to pay (Yu and Abler 2010). For such a case, it is possible respondents (farmers) cannot give a number representing their WTP but may recognize the fact that they have a positive WTP. Cragg (1971) suggested a double-hurdle model in which adoption behavior consists of two decisions: an adoption decision, which is a binary choice, modelled using a Logit; and a WTP amount decision, which is a truncated regression model....
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...Various studies have used either the double-hurdle model or the Heckman’s sample selection model in determining the willingness to pay for insurance (Cragg 1971; Norris and Batie 1987; Gabre-Madhin et al....
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...…a case, it is possible respondents (farmers) cannot give a number representing their WTP but may recognize the fact that they have a positive WTP. Cragg (1971) suggested a double-hurdle model in which adoption behavior consists of two decisions: an adoption decision, which is a binary choice,…...
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