A stochastic dual model of investment under uncertainty is used to investigatestructural adjustment in the Finnish hog industry. Value function restrictions are found to be comparable to those in existing dual models assuming deterministic state variables. The model also allows for an asymmetry...

This paper analyses factors determining the choice between standard and organic farming technology in Finland by numerically iterating a Bellman equation backwards in time. The unknown parameters of a switching-type Probit model are estimated by maximum likelihood estimation. The maximised...