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LEMON TECHNOLOGIES AND ADOPTION: MEASUREMENT, THEORY, AND EVIDENCE FROM AGRICULTURAL MARKETS IN UGANDA
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
Number of Authors: 4
2017 (English)In: Quarterly Journal of Economics, ISSN 0033-5533, E-ISSN 1531-4650, Vol. 132, no 3, 1055-1100 p.Article in journal (Refereed) Published
Abstract [en]

To reduce poverty and food insecurity in Africa requires raising productivity in agriculture. Systematic use of fertilizer and hybrid seed is a pathway to increased productivity, but adoption of these technologies remains low. We investigate whether the quality of agricultural inputs can help explain low take-up. Testing modern products purchased in local markets, we find that 30% of nutrient is missing in fertilizer, and hybrid maize seed is estimated to contain less than 50% authentic seeds. We document that such low quality results in low average returns. If authentic technologies replaced these low-quality products, however, average returns are high. To rationalize the findings, we calibrate a learning model using data from our agricultural trials. Because agricultural yields are noisy, farmers' ability to learn about quality is limited and this can help explain the low quality equilibrium we observe, but also why the market has not fully collapsed.

Place, publisher, year, edition, pages
2017. Vol. 132, no 3, 1055-1100 p.
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:su:diva-145855DOI: 10.1093/qje/qjx009ISI: 000406177000001OAI: oai:DiVA.org:su-145855DiVA: diva2:1135595
Available from: 2017-08-23 Created: 2017-08-23 Last updated: 2017-08-23Bibliographically approved

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