Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers
The optimal design of informal contracts in agricultural value chains depends on when farmers prefer to be paid for their output. While the evidence from the time preference experiments suggests a preference for early payments, ?eld studies often indicate that farmers will defer regular payments if...
| Main Authors: | , |
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| Format: | Conjunto de datos |
| Language: | Inglés |
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International Food Policy Research Institute
2021
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| Online Access: | https://hdl.handle.net/10568/144423 |
| _version_ | 1855521885225222144 |
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| author | International Food Policy Research Institute Tinbergen Institute, Vrije Universiteit Amsterdam |
| author_browse | International Food Policy Research Institute Tinbergen Institute, Vrije Universiteit Amsterdam |
| author_facet | International Food Policy Research Institute Tinbergen Institute, Vrije Universiteit Amsterdam |
| author_sort | International Food Policy Research Institute |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The optimal design of informal contracts in agricultural value chains depends on when farmers prefer to be paid for their output. While the evidence from the time preference experiments suggests a preference for early payments, ?eld studies often indicate that farmers will defer regular payments if given the opportunity. In this study, we explicitly test whether farmers are more patient regarding regular, earned income than regarding experimental windfall payments. We asked farmers in a dairy cooperative in Kenya to allocate both their milk income and a one-time gift between an early and a deferred payment date. We ?nd that a large majority of participants deferred their milk payments, while rarely choosing to defer the gift. Participants? survey responses suggest that we observe this di?erence because of mental accounting: participants earmarked their regular milk payments, but not the gift, to save for bulky expenditures. We conclude that deferred payments can provide value to producers by functioning as a savings device, even when decisions over windfall income suggest a preference for early payments. We are sharing the data collected through this experiment as well as our do-files for replication and further analysis purposes. |
| format | Conjunto de datos |
| id | CGSpace144423 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1444232025-12-08T10:06:44Z Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers International Food Policy Research Institute Tinbergen Institute, Vrije Universiteit Amsterdam value chains income supply chains field experimentation marketing markets dairying The optimal design of informal contracts in agricultural value chains depends on when farmers prefer to be paid for their output. While the evidence from the time preference experiments suggests a preference for early payments, ?eld studies often indicate that farmers will defer regular payments if given the opportunity. In this study, we explicitly test whether farmers are more patient regarding regular, earned income than regarding experimental windfall payments. We asked farmers in a dairy cooperative in Kenya to allocate both their milk income and a one-time gift between an early and a deferred payment date. We ?nd that a large majority of participants deferred their milk payments, while rarely choosing to defer the gift. Participants? survey responses suggest that we observe this di?erence because of mental accounting: participants earmarked their regular milk payments, but not the gift, to save for bulky expenditures. We conclude that deferred payments can provide value to producers by functioning as a savings device, even when decisions over windfall income suggest a preference for early payments. We are sharing the data collected through this experiment as well as our do-files for replication and further analysis purposes. 2021 2024-06-04T09:44:10Z 2024-06-04T09:44:10Z Dataset https://hdl.handle.net/10568/144423 en https://doi.org/10.1080/00220388.2019.1632436 https://hdl.handle.net/10568/147901 Open Access International Food Policy Research Institute International Food Policy Research Institute; Tinbergen Institute, Vrije Universiteit Amsterdam. 2021. Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers. Washington, DC: International Food Policy Research Institute. https://doi.org/10.7910/DVN/0KKKUS. Harvard Dataverse. Version 1. |
| spellingShingle | value chains income supply chains field experimentation marketing markets dairying International Food Policy Research Institute Tinbergen Institute, Vrije Universiteit Amsterdam Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title | Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title_full | Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title_fullStr | Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title_full_unstemmed | Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title_short | Intertemporal Choice and Income Regularity: Non-Fungibility in the Timing of Income Among Kenyan Farmers |
| title_sort | intertemporal choice and income regularity non fungibility in the timing of income among kenyan farmers |
| topic | value chains income supply chains field experimentation marketing markets dairying |
| url | https://hdl.handle.net/10568/144423 |
| work_keys_str_mv | AT internationalfoodpolicyresearchinstitute intertemporalchoiceandincomeregularitynonfungibilityinthetimingofincomeamongkenyanfarmers AT tinbergeninstitutevrijeuniversiteitamsterdam intertemporalchoiceandincomeregularitynonfungibilityinthetimingofincomeamongkenyanfarmers |