Crossbred Cow Adoption and Milk Market Participation in Multivariate Count Data Framework

Abstract

This paper introduces a multivariate generalization of the Poisson regression model in which adoption of crossbred dairy cows, milk production, and milk sales are simultaneously estimated by application of Gibbs sampling and data augmentation techniques. We model the count data from two sites in Ethiopia in a latent, categorical-variable setting with known bin boundaries, accommodating the covariance between crossbred-cow adoption, milk-output, and milk-sales equations. The results are intuitive and have important practical implications for policymakers aiming to expand milk marketing in highland Ethiopia.

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