Social learning: an application to Kenyan agriculture

Kees Burger, Paul Collier and Jan Willem Gunning

No 1993-05, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: Social learning is a phenomenon which has been investigated empirically in contexts as disparate as stock market pricing (Topol (1991)) and peasant agriculture (Case (1992) - See Loehlin (1987) for a survey). Two recent analytic models have provided an explicit framework in which agents supplement or even ignore their own information sets by imitating the decisions of others, (Ellison and Fudenberg (1993), Banerjee (1992), hereafter EF and B). In this paper we apply a variant of these analytic models to the adoption of coffee by Kenyan peasant farmers. Section 2 discusses options in the analytic modelling of the social learning process. Section 3 discusses the options which are feasible given our data set. Section 4 derives the econometric modelling design appropriate for these choices. Section 5 presents the results and Section 6 concludes.

Date: 1993
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