Heterogeneous returns and the persistence of agricultural technology adoption
AbstractIn this paper we explore whether low rates of sustained technology use can be explained by heterogeneity in returns to adoption. To do so we evaluate impacts of the Cocoa Abrabopa Association, which provided a package of fertilizer and other inputs on credit to cocoa farmers in Ghana. High estimated average productive impacts for treated farmers are found to be consistent with negative economic profits for a substantial proportion of the treated population. By constructing an individual specific measure of returns,we demonstrate that low realized returns among adopters are associated with low retention rates, even after conditioning on output levels and successful repayment. The results are consistent with the hypothesis that high average returns mask substantial and persistent heterogeneity, and that farmers experiment in order to learn about their idiosyncratic returns.
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Bibliographic InfoPaper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2010-37.
Date of creation: 2010
Date of revision:
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
This paper has been announced in the following NEP Reports:
- NEP-AFR-2010-12-18 (Africa)
- NEP-AGR-2010-12-18 (Agricultural Economics)
- NEP-ALL-2010-12-18 (All new papers)
- NEP-DEV-2010-12-18 (Development)
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- Caria, A. Stefano & Tamru, Seneshaw & Bizuneh, Gera, 2011. "Food security without food transfers?: A CGE analysis for Ethiopia of the different food security impacts of fertilizer subsidies and locally sourced food transfers," IFPRI discussion papers 1106, International Food Policy Research Institute (IFPRI).
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