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Linking Risk Aversion, Time Preference and Fertilizer Use in Burkina Faso

Author

Listed:
  • Tristan Le Cotty
  • Elodie Maitre d'Hotel
  • Raphael Soubeyran
  • Julie Subervie

Abstract

This paper investigates whether Burkinabe maize farmers’ fertilizer-use decisionsare correlated with their risk and time preferences. We conducted a survey and a se-ries of hypothetical experiments on a sample of 1,500 farmers. We find that morepatient farmers do use more fertilizer, but it is only because they plant more maize (afertilizer-intensive crop) rather than because they use more fertilizer per hectare ofmaize planted. Conversely, we find no statistically significant link between risk aver-sion and fertilizer use. We use a simple two-period model, which suggests that riskaversion may indeed have an ambiguous effect on fertilizer use.

Suggested Citation

  • Tristan Le Cotty & Elodie Maitre d'Hotel & Raphael Soubeyran & Julie Subervie, 2017. "Linking Risk Aversion, Time Preference and Fertilizer Use in Burkina Faso," Working Papers 17-01, LAMETA, Universtiy of Montpellier.
  • Handle: RePEc:lam:wpaper:17-01
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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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