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Heterogeneous returns and the persistence of agricultural technology adoption

Andrew Zeitlin, Stefano Caria, Richman Dzene, Petr Janský, Emmanuel Opoku and Francis Teal

No 2010-37, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: In this paper we explore whether low rates of sustained technology use can be explained by heterogeneity in returns to adoption. To do so we evaluate impacts of the Cocoa Abrabopa Association, which provided a package of fertilizer and other inputs on credit to cocoa farmers in Ghana. High estimated average productive impacts for treated farmers are found to be consistent with negative economic profits for a substantial proportion of the treated population. By constructing an individual specific measure of returns,we demonstrate that low realized returns among adopters are associated with low retention rates, even after conditioning on output levels and successful repayment. The results are consistent with the hypothesis that high average returns mask substantial and persistent heterogeneity, and that farmers experiment in order to learn about their idiosyncratic returns.

JEL-codes: O13 O33 Q12 Q16 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-afr, nep-agr and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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