Contract Structure, Time Preference, and Technology Adoption
Shyamal Chowdhury (shyamal.chowdhury@sydney.edu.au),
Joeri Smits (joeri_smits@hks.harvard.edu) and
Qigang Sun (leo.sun@yale.edu)
Additional contact information
Shyamal Chowdhury: University of Sydney
Joeri Smits: Harvard Kennedy School
Qigang Sun: Yale University
No 13590, IZA Discussion Papers from Institute of Labor Economics (IZA)
Abstract:
Do constraints to technology adoption vary by behavioral traits? We randomize 150 villages in Bangladesh into being offered standard microcredit, loans with a grace period, the choice between those two contracts, and control. No discernible average effects are detected on the adoption of mechanized irrigation, hybrid seeds, and chemical fertilizers. However, credit access enhances technology adoption among present-biased farmers, whose output and profits increase. These effects are driven by the standard contract and choice villages, as present-biased farmers select out of the grace period contract. This suggests offering commitment and screening applicants on present bias to enhance agricultural technology adoption.
Keywords: microfinance; technology adoption; time inconsistency; Bangladesh (search for similar items in EconPapers)
JEL-codes: D15 G51 O13 O33 Q14 Q16 (search for similar items in EconPapers)
Pages: 66 pages
Date: 2020-08
New Economics Papers: this item is included in nep-agr, nep-fdg and nep-mfd
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Citations: View citations in EconPapers (1)
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