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Social learning and production heterogeneity

Author

Listed:
  • Wen, Fang-I.
  • Stefanou, Spiro E.

    (Chung-Hua Institution for Economic Research, Taiwan
    Pennsylvania State University, USA)

Abstract

Sustaining competitiveness over the long run can suggest that decision makers must acquire knowledge to support the selection of technology systems and an understanding of an implemented technology. Social learning is an important source of knowledge acquisition as the decision maker exchanges and discusses information with other decision makers via social communication. The empirical questions are (i) how does the decision maker choose learning partners, and (ii) how does the social learning behavior influence the firm’s production decision and technology over time? This study constructs an econometric model to reflect the connection between the decision maker’s social learning and the production behavior. The latent class stochastic frontier model (LCSFM) is used to estimate a model of heterogeneous learning using the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) India data. Since caste rank plays an important role in people’s social life in rural areas in India, the empirical results reveals the connection between social learning and production behavior by showing the importance of caste rank in production decisions.

Suggested Citation

  • Wen, Fang-I. & Stefanou, Spiro E., 2007. "Social learning and production heterogeneity," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(1), pages 91-115, January-M.
    • Handle: RePEc:jda:journl:vol.41:year:2007:issue1:pp:117-126
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    File URL: http://muse.jhu.edu/journals/jda/summary/v041/41.1wen.html
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    Cited by:

    1. Morello, Thiago Fonseca & Piketty, Marie-Gabrielle & Gardner, Toby & Parry, Luke & Barlow, Jos & Ferreira, Joice & Tancredi, Nicola S., 2018. "Fertilizer Adoption by Smallholders in the Brazilian Amazon: Farm-level Evidence," Ecological Economics, Elsevier, vol. 144(C), pages 278-291.
    2. Bérard, Céline, 2009. "Le processus de décision dans les systèmes complexes : une analyse d’une intervention systémique," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/6539 edited by Romelaer, Pierre & Cloutier, Martin L..

    More about this item

    Keywords

    Production Heterogeneity; Social Learning; Latent Class Stochastic Frontier Model;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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