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Probability Weighting and Fertilizer Use in a State-Contingent Framework

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  • Holden, S.T.
  • Quiggin, J.

Abstract

Limited use of fertilizer by African farmers has been a major source of policy concern in Africa. This study assesses the fertilizer adoption responses of food insecure farmers in Malawi. A field experiment, eliciting risk attitudes of farmers, is combined with a detailed farm household survey. A state-contingent production model with rank-dependent utility preferences is estimated. Over-weighting of small probabilities was associated with less use of fertilizer on all maize types and particularly so on the more risky improved maize types. Acknowledgement :

Suggested Citation

  • Holden, S.T. & Quiggin, J., 2018. "Probability Weighting and Fertilizer Use in a State-Contingent Framework," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277355, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277355
    DOI: 10.22004/ag.econ.277355
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