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Social Preferences and Agricultural Innovation: An Experimental Case Study from Ethiopia

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  • Kebede, Bereket
  • Zizzo, Daniel John

Abstract

We run an experiment in Ethiopia where farmers can use their own money to decrease the money of others (money burning). The data support the prediction from an inequality aversion model based on absolute income differences; but there is no support for an inequality aversion model based on comparison with mean payoff of others. Experimentally measured money burning on the village level is negatively correlated to real-life agricultural innovations. This result is robust even when data from another independent survey than the current research are used. This underscores the importance of social preferences in agricultural innovations in developing countries.

Suggested Citation

  • Kebede, Bereket & Zizzo, Daniel John, 2015. "Social Preferences and Agricultural Innovation: An Experimental Case Study from Ethiopia," World Development, Elsevier, vol. 67(C), pages 267-280.
    • Handle: RePEc:eee:wdevel:v:67:y:2015:i:c:p:267-280
    DOI: 10.1016/j.worlddev.2014.10.022
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    5. Fehr, Dietmar, 2018. "Is increasing inequality harmful? Experimental evidence," Games and Economic Behavior, Elsevier, vol. 107(C), pages 123-134.
    6. Zeballos, Eliana, 2015. "Getting a Leg Up or Pulling it Down? Interpersonal Comparisons and Destructive Actions: Experimental Evidence from Bolivia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205660, Agricultural and Applied Economics Association.
    7. Zeballos, Eliana, 2015. "Getting a Leg Up or Pulling it Down? Interpersonal Comparisons and Destructive Actions: Experimental Evidence from Bolivia," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 206857, Agricultural and Applied Economics Association.
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    9. Amare, Dagninet & Darr, Dietrich, 2020. "Agroforestry adoption as a systems concept: A review," Forest Policy and Economics, Elsevier, vol. 120(C).

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