Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program

This research estimates the impact of INDAP's Credit Program on the per hectare agricultural income of small agricultural producers. To accomplish this, a Treatment Effects Model (TEM) is employed to simultaneously estímate producer incomes and program participation functions, correcting for th...

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Autores principales:	Donoso,Guillermo, Melo,Oscar, Negrete,Eduardo
Lenguaje:	English
Publicado:	Pontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería Forestal 2010
Materias:	Program impact estimation selection bias rural finance treatment effects model
Acceso en línea:	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202010000200009
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spelling	oai:scielo:S0718-162020100002000092010-10-14Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit programDonoso,GuillermoMelo,OscarNegrete,Eduardo Program impact estimation selection bias rural finance treatment effects model This research estimates the impact of INDAP's Credit Program on the per hectare agricultural income of small agricultural producers. To accomplish this, a Treatment Effects Model (TEM) is employed to simultaneously estímate producer incomes and program participation functions, correcting for the potential presence of selectivity bias through the correlation between the errors of both functions. The results indicate that farmers of greater age present a higher disposition to participate in the program, but their interest decreases as their age increases. Additionally, producers who are acquainted with and evaluate the financial cost of credits as well as those producers whose income comes mainly from their land, who are landowners, present a greater family size and work greater land surfaces, present a greater disposition to participate. The results also indicate the existence of selection bias due to the nonrandom participation of farmers in the program. A negative correlation between the error terms of the per hectare agricultural income and participation function is observed. This implies that Ordinary Least Squares (OLS) underestimates the true effect of the program, because it omits the different initial situations between the treated and control group, situation corrected by the TEM estimation. In addition, the results indicate that there exists a positive and significant difference in the per hectare agricultural income between both groups in favor of the participants of the Credit Programs of INDAP, thus the Credit Program presents a positive impact on producer income levels.info:eu-repo/semantics/openAccessPontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería ForestalCiencia e investigación agraria v.37 n.2 20102010-08-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202010000200009en10.4067/S0718-16202010000200009
institution	Scielo Chile
collection	Scielo Chile
language	English
topic	Program impact estimation selection bias rural finance treatment effects model
spellingShingle	Program impact estimation selection bias rural finance treatment effects model Donoso,Guillermo Melo,Oscar Negrete,Eduardo Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
description	This research estimates the impact of INDAP's Credit Program on the per hectare agricultural income of small agricultural producers. To accomplish this, a Treatment Effects Model (TEM) is employed to simultaneously estímate producer incomes and program participation functions, correcting for the potential presence of selectivity bias through the correlation between the errors of both functions. The results indicate that farmers of greater age present a higher disposition to participate in the program, but their interest decreases as their age increases. Additionally, producers who are acquainted with and evaluate the financial cost of credits as well as those producers whose income comes mainly from their land, who are landowners, present a greater family size and work greater land surfaces, present a greater disposition to participate. The results also indicate the existence of selection bias due to the nonrandom participation of farmers in the program. A negative correlation between the error terms of the per hectare agricultural income and participation function is observed. This implies that Ordinary Least Squares (OLS) underestimates the true effect of the program, because it omits the different initial situations between the treated and control group, situation corrected by the TEM estimation. In addition, the results indicate that there exists a positive and significant difference in the per hectare agricultural income between both groups in favor of the participants of the Credit Programs of INDAP, thus the Credit Program presents a positive impact on producer income levels.
author	Donoso,Guillermo Melo,Oscar Negrete,Eduardo
author_facet	Donoso,Guillermo Melo,Oscar Negrete,Eduardo
author_sort	Donoso,Guillermo
title	Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
title_short	Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
title_full	Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
title_fullStr	Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
title_full_unstemmed	Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program
title_sort	participation determinants and impact assessment of the institute of agricultural development (indap) credit program
publisher	Pontificia Universidad Católica de Chile. Facultad de Agronomía e Ingeniería Forestal
publishDate	2010
url	http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0718-16202010000200009
work_keys_str_mv	AT donosoguillermo participationdeterminantsandimpactassessmentoftheinstituteofagriculturaldevelopmentindapcreditprogram AT melooscar participationdeterminantsandimpactassessmentoftheinstituteofagriculturaldevelopmentindapcreditprogram AT negreteeduardo participationdeterminantsandimpactassessmentoftheinstituteofagriculturaldevelopmentindapcreditprogram
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Participation determinants and impact assessment of the Institute of Agricultural Development (INDAP) credit program

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