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Profitability of Fertilizer: Experimental Evidence from Female Rice Farmers in Mali

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  • Beaman, Lori
  • Karlan, Dean S.
  • Udry, Christopher R.
  • Thuysbaert, Bram

Abstract

We conducted an experiment providing fertilizer grants to female rice farmers in Mali. We found that women who received fertilizer used both more fertilizer and more complementary inputs such as herbicides and hired labor. This shows that farmers respond to an increase in one input by re-optimizing other inputs. Second, while the increase in inputs led to a considerable increase in output, we found no evidence that profits increased. Our results suggest that fertilizer's impact on profits is small compared to other sources of variation. This may make it difficult for farmers to learn about the returns to fertilizer.
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Suggested Citation

  • Beaman, Lori & Karlan, Dean S. & Udry, Christopher R. & Thuysbaert, Bram, 2013. "Profitability of Fertilizer: Experimental Evidence from Female Rice Farmers in Mali," Center Discussion Papers 143826, Yale University, Economic Growth Center.
    • Handle: RePEc:ags:yaleeg:143826
    DOI: 10.22004/ag.econ.143826
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    References listed on IDEAS

    as
    1. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    2. Esther Duflo & Michael Kremer & Jonathan Robinson, 2008. "How High Are Rates of Return to Fertilizer? Evidence from Field Experiments in Kenya," American Economic Review, American Economic Association, vol. 98(2), pages 482-488, May.
    3. Tavneet Suri, 2011. "Selection and Comparative Advantage in Technology Adoption," Econometrica, Econometric Society, vol. 79(1), pages 159-209, January.
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    More about this item

    Keywords

    Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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

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