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Probability Weighting and Fertilizer Use in a State-Contingent Framework

Stein Holden () and J. Quiggin

No 277355, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: Limited use of fertilizer by African farmers has been a major source of policy concern in Africa. This study assesses the fertilizer adoption responses of food insecure farmers in Malawi. A field experiment, eliciting risk attitudes of farmers, is combined with a detailed farm household survey. A state-contingent production model with rank-dependent utility preferences is estimated. Over-weighting of small probabilities was associated with less use of fertilizer on all maize types and particularly so on the more risky improved maize types. Acknowledgement :

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-upt
Date: 2018-07
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