EconPapers    
Economics at your fingertips  
 

Nudging farmers in crop choice using price information: Evidence from Ethiopian Commodity Exchange

Dagim Belay () and Hailemariam Ayalew ()

Agricultural Economics, 2020, vol. 51, issue 5, 793-808

Abstract: The lack of reference price information is often regarded as one of the most pervasive aspects of incomplete commodity markets in developing countries. Previous studies on the effects of price information emphasize the market participation and performance of rural households. This paper argues that access to reference price information influences farmers’ crop choice decisions, the most important decision in farming activity. The study exploits the variation in timing and spatial distance of the publicly run Ethiopian Commodity Exchange (ECX) price tickers as an indicator for variation in the intensity of access to reference price information among rural villages in Ethiopia. The paper finds that access to price information increases the average farm‐gate prices for traded commodities and incentivizes farmers to allocate more land, fertilizer and improved seeds to commodities traded in the ECX. It also nudges farmers to produce more of the traded commodities, increasing the output share of ECX‐traded commodities.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/agec.12592

Related works:
Working Paper: Nudging farmers in crop choice using price information: Evidence from Ethiopian Commodity Exchange (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:agecon:v:51:y:2020:i:5:p:793-808

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0169-5150

Access Statistics for this article

Agricultural Economics is currently edited by W.A. Masters and G.E. Shively

More articles in Agricultural Economics from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2022-05-29
Handle: RePEc:bla:agecon:v:51:y:2020:i:5:p:793-808