EconPapers    
Economics at your fingertips  
 

Innovation Adoption and Liquidity Constraints in the Presence of Grassroots Extension Agents: Evidence from the Peruvian Highlands

Isabelle Bonjean, Jean-Philippe Platteau and Vincenzo Verardi

No 12263, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: To analyze the role of the income constraint in slowing innovation adoption, this paper uses a technology diffusion program based on the work of business-oriented grassroots extension agents in the Peruvian Highlands. Taking advantage of a multiplicity of innovations with different characteristics and of information about innovation suppliers who can grant seller credit, we show that the income constraint operates in a limited manner. Moreover, due to higher trust associated with greater familiarity, households are better able to adopt costly and indivisible innovations when a supplier/lender resides in their own community. The story emerging from the program evokes the relatively egalitarian process underlying the Green Revolution as it has taken place in Asian agriculture, in particular. Overall, our conclusion goes against the pessimistic assessment of the impact of extension work in poor areas that emerges from the current literature.

Keywords: credit; Innovation adoption; liquidity constraint; Trust (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ino and nep-sbm
Date: 2017-09
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)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=12263 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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: https://EconPapers.repec.org/RePEc:cpr:ceprdp:12263

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12263

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-11-24
Handle: RePEc:cpr:ceprdp:12263