CLTS Working Paper on Probability Weighting and Input Use Intensity

The paper "Probability Weighting and Input Use Intensity in a State-Contingent Framework" written by Stein T. Holden and John Quiggin is now published as a CLTS Working Paper.

CLTS Working Paper on Probability Weighting and Input Use Intensity

The paper is published as a CLTS Working Paper and can be downloaded here.

Abstract
Climate risk represents an increasing threat to poor and vulnerable farmers in drought-prone areas of Africa. This study assesses the fertilizer adoption responses of food insecure farmers in Malawi, where Drought Tolerant (DT) maize was recently introduced. 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.

Published 5. May 2017 - 10:49 - Updated 5. May 2017 - 12:49

Norwegian University of Life Sciences (NMBU)

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