Abstract
We present a dynamic model of on-farm nitrogen fertilisation management that allows for a structural relationship between land allocation decisions and nitrogen carry-over from previous crops. We derive conditions for efficient inter-temporal nitrogen management in a multi-crop setting, and suggest an empirical testing procedure for crop rotation patterns based on farm-level data. Nitrogen carry-over indexes and production parameters are estimated by the Generalised Method of Moments using panel data for a sample of French farmers.
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