Alternative functional forms for technology choice: Application to cocoa production technologies

The role of technology - its economics and factors that influence technological choice decisions have been a concern in development policy. Logit and probit functional forms have been largely used in modelling technology choice (adoption). We employed two other functional forms; loglog and cloglog, applied to adoption of Fairtrade and organic cocoa producers in the Eastern Region of Ghana. Using fractional regression modelling, we demonstrate the need to explore alternative functional forms other than logit and probit, in binary choice related problems. Interestingly, the battery of tests employed rejected the logit and probit functional forms. Alternative assessment criteria such as size, statistical significance of parameters and differences in parameter estimates produced more interesting results.