Skip to main content Accessibility help

Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast

  • Henry Kinnucan (a1), Upton Hatch (a1), Joseph J. Molnar (a1) and Meenakshi Venkateswaran (a1)


Bovine somatotropin (BST), a new technology capable of enhancing a cow's ability to produce milk by 7-23 percent, is expected to be available for commercial use soon. Ex ante survey procedures are used to determine the potential effect of BST on the size distribution of dairy farms in the Southeast. Results of logit analysis indicate a positive link between farm size and (1) farmers' knowledge of BST and (2) intentions to adopt early, suggesting BST will not be scale neutral. An estimated “price elasticity” of -1.8 to -2.1 indicates an elastic demand for the input Price, therefore, may be an effective instrument for attenuating the scale bias.



Hide All
Bohlen, J.M. “The Adoption and Diffusion of Ideas in Agriculture”. Our Changing Rural Society: Perspectives and Trends. Capp, J.H., ed., Iowa State University Press, 1964.
Buttel, F. and Geisler, C.C.. “The Social Impacts of Bovine Somatotropin: Emerging Issues”. Biotechnology and the New Agricultural Revolution. Molnar, J J., and Kinnucan, H., eds. Boulder, CO: American Association for the Advancement of Science and Westview Press, 1989.
Cancian, F. “Stratification and Risk-Taking: A Theory Tested on Agricultural Innovation”. Am. Socio. Rev. 32(1967): 912927.
Cochrane, , Willard, . The Development of American Agriculture. University of Minnesota Press, 1979.
Comstock, G. “The Case Against bGH”. Agriculture and Human Values. 5(1988):3652.
Fallert, R. McGuckin, T., Betts, C., and Bruner, G.. “bST and the Dairy Industry”. Washington, D.C. USDA ERS.Report No. 579, 1987.
Feder, , Gershon, and Slade, Roger. “The Acquisition of Information and the Adoption of New Technology”. Am. J. Agr. Econ. 66(1984):312320.
Fishel, W.L. “The Economics of Agricultural Biotechnology: Discussion”. Am. J. Agr. Econ. 69(1987):438439.
Griliches, Zvi. “Hybrid Corn: An Exploration in the Economics of Technological Change”. Econometrica 25(1957):501522.
Hammond, J.W. “The Minnesota Dairy Farm Sector: Summary of the 1988 University of Minnesota Dairy Farm Survey”. Minnesota Report No. 216-1989, Minnesota Agricultural Experiment Station. St. Paul, 1989.
Hatch, U, Kuchler, F.. “Regulation of Agricultural Biotechnology: Historical Perspectives”. Biotechnology and the New Agricultural Revolution. Molnar, J.J. and Kinnucan, H., eds. Boulder, CO: American Association for the Advancement of Science and Westview Press, 1989.
Heckman, J.J. “Sample Selection Bias as a Specification Error”. Econometrica 47(1979): 153161.
Just, R., and Zilberman, D.. “Stochastic Structure, Farm Size, and Technology Adoption in Developing Agriculture.Oxford Economic Papers 35(1983):307328.
Kalter, , Robert, J., Milligan, Robert, Lesser, William, Magrath, William, and Bauman, Dale. “Biotechnology and the Diary Industry: Production Costs, Commercial Potential, and the Economic Impact of the Bovine Growth Hormone,” Cornell University Agricultural Economics Department, A.E. Research 85-20,1985.
Kinnucan, H., Hatch, U., Pendergrast, R., and Molnar, J.J.. “Adoption and Diffusion Potentials for Bovine Somatotropin in the Southeast Dairy Industry.” Alabama Agricultural Experiment Station Bulletin No. 605, Auburn University, February 1990.
Kmenta, Jan. Elements of Econometrics. 2nd ed. New York: Macmillan Publishing Co., 1986.
Kronfield, D.S. “Biological and Economic Risks Associated with Use of Bovine Somatotropin”. J. Vet.Medicare Assoc. 192(1988): 16931700.
Kuchler, F. and McClelland, J.. “Issues Raised by New Agricultural Technologies: Livestock Growth Hormones”. USDA ERS. Agricultural Economic Report No. 608,1989.
Lee, L.F. “Fully Recursive Probability Models and Multivariate Log-Linear Probability Models for the Analysis of Qualitative Data”. Econometrics 16(1981):5169.
Lesser, W. Magrath, W., and Kalter, R.. “Projecting Adoption Rates: Application of an Ex Ante Procedure to Biotechnology Products”. North Central J. Agr. Econ. 8(1986):159174.
Lindner, R.K. “Farm Size and the Time Lag to Adoption of Scale-Neutral Innovations”. Mimeographed. Adelaide, Australia: University of Adelaide, 1980.
Maddala, G.S. Limited-Dependent and Qualitative Variables in Econometrics. New York: Cambridge University Press, 1983.
Miller, R.G. Jr. Simultaneous Statistical Inference. 2nd ed. New York: Springer-Verlag, Inc., 1981.
Molnar, J.J. Cummins, K.A., and Novak, P.F.. “Bovine Somatotropin: Biotechnology Product and Social Issues in the U.S. Dairy Industry”. J. Diary Science 73(1990). Forthcoming.
Pratt, J.W. “Risk Aversion in the Small and in the Large”. Econometrica 32(1964): 122136.
Rogers, E. Diffusion of Innovations. 3rd ed. New York: Free Press, 1985.
Savin, N.E. “Multiple Hypothesis Testing”. Handbook of Econometrics. Griliches, Z. and Intriligator, M.D.,eds. Amsterdam: Elsevier Science Publishers, 1984.
Zepeda, L. “A Survey of California Dairy Farmers: Potential Adoption of Bovine Somatotropin”. Univ. of California Agr. Issues Center Paper No. 88-1,1988.


Scale Neutrality of Bovine Somatotropin: Ex Ante Evidence from the Southeast

  • Henry Kinnucan (a1), Upton Hatch (a1), Joseph J. Molnar (a1) and Meenakshi Venkateswaran (a1)


Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed