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Risk, Schooling and the Choice of Seed Technology in Developing Countries: A Meta-Profit Function Approach

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Author Info
Pitt, Mark M
Sumodiningrat, Gunawan
Abstract

The determinants of rice seed variety choice are studied in a framework in which cultivator's variety-specific profit, risk preferences, uncertainty, and schooling affect variety choice. The econometric model takes the form of a simultaneous equation switching regimes model with random profit functions (the metaprofit functions). Adoption of high-yielding varieties in Indonesia is found to be positively associated with profitability, likelihood of flooding, quality of irrigation conditional on relative profit, and availability of credit, and negatively associated with likelihood of drought and land wealth. Schooling significantly affects variety-specific profit and input demand, but not variety choice. Copyright 1991 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 32 (1991)
Issue (Month): 2 (May)
Pages: 457-73
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Handle: RePEc:ier:iecrev:v:32:y:1991:i:2:p:457-73

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  1. Blackman, Allen & Bannister, Geoffrey, 1997. "Community Pressure and Clean Technologies in the Informal Sector: An Econometric Analysis of the Adoption of Propane by Traditional Brickmakers in Ciudad Juarez, Mexico," Discussion Papers dp-97-16-rev, Resources For the Future. [Downloadable!]
  2. Blackman, Allen, 1999. "The Economics of Technology Diffusion: Implications for Climate Policy in Developing Countries," Discussion Papers dp-99-42, Resources For the Future. [Downloadable!]
  3. Ersado, Lire & Amacher, Gregory & Alwang, Jeffrey, 2003. "Productivity and land enhancing technologies in Northern Ethiopia: health, public investments, and sequential adoption," EPTD discussion papers 102, International Food Policy Research Institute (IFPRI). [Downloadable!]
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