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Duflo, Esther,
Michael Kremer, and
Jonathan Robinson. 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya."
,
101(6): 2350-90.
Show Article Details
DOI: 10.1257/aer.101.6.2350
Abstract:We model farmers as facing small fixed costs of purchasing fertilizer and assume some are stochastically present biased and not fully sophisticated about this bias. Such farmers may procrastinate, postponing fertilizer purchases until later periods, when they may be too impatient to purchase fertilizer. Consistent with the model, many farmers in Western Kenya fail to take advantage of apparently profitable
fertilizer investments, but they do invest in response to small, time-limited discounts on the cost of acquiring fertilizer (free delivery) just after harvest. Calibration suggests that this policy can yield
higher welfare than either laissez-faire policies or heavy subsidies. (JEL Q13, Q12, Q16, Q18)
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Authors:
Duflo, Esther (J-PAL, MIT and Paris School of Economics)
Kremer, Michael (Harvard U and BREAD, Duke U)
Robinson, Jonathan (U CA, Santa Cruz and BREAD, Duke U)
JEL Classifications:
Q12: Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q13: Agricultural Markets and Marketing; Cooperatives; Agribusiness
Q16: Agricultural R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
Q18: Agricultural Policy; Food Policy
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