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Present Bias Predicts Low Adoption of Profitable Technologies : The Case of Livestock Vaccination in Northern Laos

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  • Creed, Christian

    (Monash University)

Abstract

Can behavioural characteristics explain the low adoption of profitable technologies? We explore this question by quantifying the importance of present bias on cattle producers’ decision to vaccinate against foot-and-mouth disease, a simple and well-known technology that, despite its high returns, is largely overlooked. Our results show that producers who exhibit a stronger present bias are much less likely to vaccinate their cattle, an effect which is robust to a large set of control variables (including wealth and access to information), larger than the effect of any other observed covariate and insensitive to plausible assumptions about the importance of unobserved determinants of adoption. We discuss some of the potential implications of these results for the design of vaccine delivery and to other policies that aim to overcome self-control problems.

Suggested Citation

  • Creed, Christian, 2021. "Present Bias Predicts Low Adoption of Profitable Technologies : The Case of Livestock Vaccination in Northern Laos," Warwick-Monash Economics Student Papers 27, Warwick Monash Economics Student Papers.
    • Handle: RePEc:wrk:wrkesp:27
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/wmesp/manage/27_-_christian_creed.pdf
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    More about this item

    Keywords

    Technology Adoption ; Vaccination ; Present Bias JEL Classification: O10 ; O13 ; Q16;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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