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Partial Adoption of Divisible Technologies in Agriculture

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  • Szmedra, Philip I.
  • Wetzstein, Michael E.
  • McClendon, Ronald W.

Abstract

We have developed a dynamic theoretical model to investigate technology complements where the degree of adoption is a function of producers' prior technology levels. Based on this model, we used an empirical application to assess the adoption of integrated pest management (IPM) with and without irrigation. Results indicate that the degree of new technology adoption may depend on the extent of the risk. For example, strongly risk-averse producers who use dryland technology may only partially adopt IPM. And producers who irrigate to significantly decrease variation in yield and returns may also only partially adopt IPM.

Suggested Citation

  • Szmedra, Philip I. & Wetzstein, Michael E. & McClendon, Ronald W., 1990. "Partial Adoption of Divisible Technologies in Agriculture," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 42(3), pages 1-7.
    • Handle: RePEc:ags:uersja:139032
    DOI: 10.22004/ag.econ.139032
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    1. Meyer, Jack, 1977. "Second Degree Stochastic Dominance with Respect to a Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 477-487, June.
    2. Prabhu L. Pingali & Gerald A. Carlson, 1985. "Human Capital, Adjustments in Subjective Probabilities, and the Demand for Pest Controls," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(4), pages 853-861.
    3. Derek Byerlee & Edith Hesse de Polanco, 1986. "Farmers' Stepwise Adoption of Technological Packages: Evidence from the Mexican Altiplano," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 519-527.
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    2. Anderson, Jock R., 1993. "The Economics of New Technology Adaptation and Adoption," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 61(02-2), pages 1-9, August.
    3. Kanakasabai, Murali & Dillon, Carl R., 2004. "Potential For Farm Adaptation To Global Climatic Change In Kentucky," 2004 Annual meeting, August 1-4, Denver, CO 20422, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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