Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia
The level of technology adoption is often characterised as low in Africa. Recent evidence, however, points to the coexistence of substantial heterogeneity across farm households and the lack of a suitable mix of inputs for farmers to take advantage of input complementarities. We use a random coeffic...
| Autores principales: | , , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
John Wiley & Sons
2018
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/146885 |
| _version_ | 1855523315856179200 |
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| author | Abay, Kibrom A. Berhane, Guush Taffesse, Alemayehu Seyoum Abay, Kibrewossen Koru, Bethlehem |
| author_browse | Abay, Kibrewossen Abay, Kibrom A. Berhane, Guush Koru, Bethlehem Taffesse, Alemayehu Seyoum |
| author_facet | Abay, Kibrom A. Berhane, Guush Taffesse, Alemayehu Seyoum Abay, Kibrewossen Koru, Bethlehem |
| author_sort | Abay, Kibrom A. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The level of technology adoption is often characterised as low in Africa. Recent evidence, however, points to the coexistence of substantial heterogeneity across farm households and the lack of a suitable mix of inputs for farmers to take advantage of input complementarities. We use a random coefficients multivariate probit model to quantify the complementarities between agricultural inputs and alternative forms of unobserved heterogeneity effects in modeling farmers' technology adoption decisions. The empirical analysis reveals that, conditional on various types of unobserved heterogeneity effects, farmers' technology adoption decisions exhibit strong complementarity for some inputs. The analysis also reveals substantial unobserved heterogeneity effects. We show that ignoring these behavioural features (unobserved heterogeneity and input complementarity) has important implications in quantifying the effect of some policy interventions that are meant to facilitate technology adoption. In particular, ignoring these features leads to significant overestimation of the effectiveness of extension services. |
| format | Journal Article |
| id | CGSpace146885 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | John Wiley & Sons |
| publisherStr | John Wiley & Sons |
| record_format | dspace |
| spelling | CGSpace1468852025-03-11T12:14:31Z Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia Abay, Kibrom A. Berhane, Guush Taffesse, Alemayehu Seyoum Abay, Kibrewossen Koru, Bethlehem models technology adoption fertilizers agricultural extension hybrids capacity development innovation adoption agricultural economics agricultural development inorganic fertilizers The level of technology adoption is often characterised as low in Africa. Recent evidence, however, points to the coexistence of substantial heterogeneity across farm households and the lack of a suitable mix of inputs for farmers to take advantage of input complementarities. We use a random coefficients multivariate probit model to quantify the complementarities between agricultural inputs and alternative forms of unobserved heterogeneity effects in modeling farmers' technology adoption decisions. The empirical analysis reveals that, conditional on various types of unobserved heterogeneity effects, farmers' technology adoption decisions exhibit strong complementarity for some inputs. The analysis also reveals substantial unobserved heterogeneity effects. We show that ignoring these behavioural features (unobserved heterogeneity and input complementarity) has important implications in quantifying the effect of some policy interventions that are meant to facilitate technology adoption. In particular, ignoring these features leads to significant overestimation of the effectiveness of extension services. 2018-06-01 2024-06-21T09:09:18Z 2024-06-21T09:09:18Z Journal Article https://hdl.handle.net/10568/146885 en Limited Access John Wiley & Sons Abay, Kibrom A.; Berhane, Guush; Taffesse, Alemayehu Seyoum; Abay, Kibrewossen; and Koru, Bethlehem. 2018. Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia. Journal of Agricultural Economics 69(2) : 495-517. https://doi.org/10.1111/1477-9552.12244 |
| spellingShingle | models technology adoption fertilizers agricultural extension hybrids capacity development innovation adoption agricultural economics agricultural development inorganic fertilizers Abay, Kibrom A. Berhane, Guush Taffesse, Alemayehu Seyoum Abay, Kibrewossen Koru, Bethlehem Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title | Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title_full | Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title_fullStr | Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title_full_unstemmed | Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title_short | Estimating input complementarities with unobserved heterogeneity: Evidence from Ethiopia |
| title_sort | estimating input complementarities with unobserved heterogeneity evidence from ethiopia |
| topic | models technology adoption fertilizers agricultural extension hybrids capacity development innovation adoption agricultural economics agricultural development inorganic fertilizers |
| url | https://hdl.handle.net/10568/146885 |
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