Holloway, Garth J.; Barrett, Christopher B.; Ehui, Simeon K. - Charles H. Dyson School of Applied Economics and … - 2002
We present a model of market adoption (participation) where the presence of non-negligible fixed costs leads to non-zero censoring of the traditional double-hurdle regression. Fixed costs arise due to household resources that must be devoted a priori to the decision to participate in the market....