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Joint estimation of information acquisition and adoption of new technologies under uncertainty

  • Awudu Abdulai

    (University of Kiel, Kiel, Germany)

  • Pierre Monnin

    (Swiss National Bank, Zurich, Switzerland)

  • Jacques Gerber

    (Swiss Federal Office for Agriculture, Bern, Switzerland)

This article develops a framework to examine households' joint decision to acquire information on new technologies and the adoption of the technology in the presence of uncertainty. The empirical application involved a sample of 406 dairy farmers in Tanzania. Education, scale of production, household size, age, and liquidity constraints are hypothesized to be the determinants of information acquisition and adoption decisions. The empirical evidence indicates that information acquisition and adoption decisions are made jointly. The findings also show that human capital and scale of operation positively and significantly affect the decision to acquire information and to adopt the technology, while liquidity constraints negatively impact on the decision to adopt, as well as the extent of adoption. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.1422
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 20 (2008)
Issue (Month): 4 ()
Pages: 437-451

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Handle: RePEc:wly:jintdv:v:20:y:2008:i:4:p:437-451
Contact details of provider: Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Huffman, Wallace, 2001. "Human Capital, Education, and Agriculture," Staff General Research Papers 10438, Iowa State University, Department of Economics.
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