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Effects of Peers on Agricultural Productivity in Rural Northern India

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  • Songsermsawas, Tisorn
  • Baylis, Kathy
  • Chhatre, Ashwini
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    Abstract

    Using a unique dataset from a household survey containing explicit social relationships among individual farmers, this study estimate the effect of peers on the revenue from cash crop sales among small-scale farmers in Northern India. We explore the learning mechanism through which peer effect occurs through improved input use and higher degree of commercialization. The significant and positive peer effects support the evidence of social learning. We control for the reflection problem using the technique proposed by Bramoulle, Djebbari, and Fortin (2009). Additionally, the positive evidence of peer effects do not disappear when we alter the definition of peers.

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    File URL: http://purl.umn.edu/166115
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association & Canadian Agricultural Economics Society & European Association of Agricultural Economists in its series 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, May 29-30, 2014, Montreal, Canada with number 166115.

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    Date of creation: 03 Apr 2014
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    Handle: RePEc:ags:aajs14:166115

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    Related research

    Keywords: Agricultural and Food Policy; Consumer/Household Economics;

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    1. Marcel Fafchamps & Bart Minten, 1999. "Property rights in a flea market economy," Economics Series Working Papers WPS/1999-25, University of Oxford, Department of Economics.
    2. Birkhaeuser, Dean & Evenson, Robert E & Feder, Gershon, 1991. "The Economic Impact of Agricultural Extension: A Review," Economic Development and Cultural Change, University of Chicago Press, vol. 39(3), pages 607-50, April.
    3. Stefan Dercon & Joachim De Weerdt, 2002. "Risk-sharing networks and insurance against illness," CSAE Working Paper Series 2002-16, Centre for the Study of African Economies, University of Oxford.
    4. Kathleen P. Bell & Timothy J. Dalton, 2007. "Spatial Economic Analysis in Data-Rich Environments," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(3), pages 487-501, 09.
    5. Bramoullé, Yann & Djebbari, Habiba & Fortin, Bernard, 2009. "Identification of peer effects through social networks," Journal of Econometrics, Elsevier, vol. 150(1), pages 41-55, May.
    6. Anselin, Luc, 1988. "A test for spatial autocorrelation in seemingly unrelated regressions," Economics Letters, Elsevier, vol. 28(4), pages 335-341.
    7. Gubert, Flore & Fafchamps, Marcel, 2007. "The Formation of Risk Sharing Networks," Economics Papers from University Paris Dauphine 123456789/4392, Paris Dauphine University.
    8. repec:fth:oxesaf:99-25 is not listed on IDEAS
    9. Katleen Van den Broeck & Stefan Dercon, 2011. "Information Flows and Social Externalities in a Tanzanian Banana Growing Village," Journal of Development Studies, Taylor & Francis Journals, vol. 47(2), pages 231-252.
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