Economics at your fingertips  

Lemon Technologies and Adoption: Measurement, Theory and Evidence from Agricultural Markets in Uganda

Tessa Bold, Kayuki C. Kaizzi, Jakob Svensson and David Yanagizawa-Drott ()

The Quarterly Journal of Economics, 2017, vol. 132, issue 3, 1055-1100

Abstract: To reduce poverty and food insecurity in Africa requires raising productivity in agriculture. Systematic use of fertilizer and hybrid seed is a pathway to increased productivity, but adoption of these technologies remains low. We investigate whether the quality of agricultural inputs can help explain low take-up. Testing modern products purchased in local markets, we find that 30% of nutrient is missing in fertilizer, and hybrid maize seed is estimated to contain less than 50% authentic seeds. We document that such low quality results in low average returns. If authentic technologies replaced these low-quality products, however, average returns are high. To rationalize the findings, we calibrate a learning model using data from our agricultural trials. Because agricultural yields are noisy, farmers’ ability to learn about quality is limited and this can help explain the low quality equilibrium we observe, but also why the market has not fully collapsed.

JEL-codes: D83 L15 O13 O33 Q12 (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (28) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Elhanan Helpman, Lawrence F. Katz and Andrei Schleifer

More articles in The Quarterly Journal of Economics from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().

Page updated 2020-07-08
Handle: RePEc:oup:qjecon:v:132:y:2017:i:3:p:1055-1100.