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Can Peers Improve Agricultural Productivity?

Author

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  • Tisorn Songsermsawas
  • Kathy Baylis
  • Ashwini Chhatre
  • Hope Michelson

Abstract

Productivity varies greatly among farmers and the source of that variation is not fully understood. Using a unique Indian household survey, we estimate peer effects on agricultural revenue. Results show that 60% of farmers' revenue is explained by peers. Input expenditures and land allocation to cash crops do not fully explain the variation in revenue, implying peers may also affect management, negotiation and marketing strategies. We verify that endogenous network formation, geography, off-farm opportunities and agricultural extension do not drive our results. Peer effects are strongest for agricultural peers and in the cultivation of a new crop.

Suggested Citation

  • Tisorn Songsermsawas & Kathy Baylis & Ashwini Chhatre & Hope Michelson, 2014. "Can Peers Improve Agricultural Productivity?," CESifo Working Paper Series 4958, CESifo.
    • Handle: RePEc:ces:ceswps:_4958
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    More about this item

    Keywords

    peer effects; agricultural productivity; India; crop revenue;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • 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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