Microeconomitric Method And Its Application To Farmer's Income

Microeconometrics is one of the main parts of the frontier development of Econometrics, its theory and methods have already become a effective empirical analysis tool in economists researching the economic actions of microeconomic mainbodies. Especially in the last few years, panel data models and discrete choice models are of very wide application and have turned into an active research field of Microeconometrics. And the nonparametric and semiparametric models, which were mainly applied to the macroeconomic fields, have become the most frontier theoretical methods and research directions of Microeconometrics too.Though Microeconometrics has become a study theme in the academic circles all over the world, studying and applying it in our country is still lagged behind, and its theory and methods have not developed an integrated theoretical system. But many theories and some actual problems need to be studied by using microeconometric method in the economic and financial circles. To push the application and developmemt of microecnometric theory and methods in our country, this paper, beginning with analyzing the research background of Microeconometrics and the theoretical contribution of Heckman and McFadden, studies and sums up the contents of Microeconometrics, especially panel data models, discrete and limited dependent variable models (included specification, estimate and test of models) Then this paper introduces some other problems and the latest progresses of microeconometric theory, and forms a systemic theoretical framework of Microeconometrics.At present, the applications of Microeconometrics have covered the wide realm of economy, but there are few of applications to farmer's income. Whereas the "rural, agricultural and farmer" is in the strategic state in our national economy, solving the "rural, agricultural and farmer's Problems" well not only connects with development andstability of the agriculture and the rural, but also relates to achievement about building a well-off society in an all-round way and the modern national strategic target. Current studies on the issue of farmer's income were focused on the macro aspect and lacked of micro-foundation. However this paper, from the microcosmic angle, discusses the affecting factors on farmer's income and the farmer's desire choice problems to peasant household that is the representative middle-income farmers by applying the panel data model and the binary choice model.