CONTENTS
I. Introduction
II. Model
III. Selection of Production Types
Ⅳ.
Conclusions
ABSTRACT
By using a two-period model in which farmers must choose one of two
alternative production technologies I analyze the relationship between farm
scales of farm income and the adoption of new technology. A high type of
production techniques yields higher returns but also demands a bigger fixed
implementation cost. I find that these fixed implementation costs imply
threshold effects in the selection process of production techniques－farmers
above a critical level of the first period income select a high type of
production techniques while farmers below the threshold select a low type of
production techniques.
