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Farmers’ investments in innovative technologies in times of precipitation extremes: A statistical analysis for rural Tanzania

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Abstract

The paper shifts the focus from the exclusively devastating character of weather extremes on socio-economic outcomes to the possibility that positive side effects may occur. Positive side effects such as higher investments in improved agricultural technologies in years of weather extremes are crucial especially in rural developing areas to overcome the negative consequences of the shocks. For that purpose, out of all households that invest in improved seeds in rural Tanzania, we model the probability of high investments in improved seeds when a year of extreme high or low precipitation occurs. We apply a conditional dependence model for multivariate extreme values that so far does not ?nd application in this context. Our appraisal of re?ection on the current situation is based on recent data published by the World Bank’s LSMS-ISA data between 2008 and 2013. Results suggest that extreme precipitation events and high investments in improved seeds with respect to overall investments are dependent events in rural Tanzania.

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  • Marmai, Nadine, 2016. "Farmers’ investments in innovative technologies in times of precipitation extremes: A statistical analysis for rural Tanzania," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201617, University of Turin.
    • Handle: RePEc:uto:dipeco:201617
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    1. Alexander Jordan & Marco Guerzoni, 2020. "The pain of a new idea: Do Late Bloomers response to Extension Service in Rural Ethiopia?," Papers 2006.02846, arXiv.org.

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