Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 833: Locus of Control and Economic Decision-Making: A Field Experiment in Odisha, India

Cecilia Ahsan Jansson (), Vikram Patil (), Joe Vecci (), Prakashan Chellattan Veettil () and Yashodha Yashodha ()
Additional contact information
Cecilia Ahsan Jansson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Vikram Patil: International Rice Research Institute (IRRI), India
Joe Vecci: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Prakashan Chellattan Veettil: International Rice Research Institute (IRRI), India.
Yashodha Yashodha: International Water Management Institute (IWMI), India

Abstract: We study psychological impediments that make it difficult to change be- haviour. In particular, we evaluate the impact of a randomised psychological intervention designed to target locus of control–an individual’s belief in their own ability to influence their outcomes – on the adoption of climate resilient technologies. In the control farmers receive a standard agricultural education. Treatment farmers are assigned to one of three treatments where they receive agricultural training and either: a psychological information treatment providing tools to change belief about one’s sense of control, a crop simulation app – al- lowing farmers to simulate their agricultural decisions and a treatment with both combined. Our sample consists of 1674 farmers from 252 villages in Odisha, India. We find that at baseline, the majority do not believe they can influence their agri- cultural outcomes. However, the interventions have little impact on agricultural behaviour, locus of control or aspirations. We then study explanations.

Keywords: Psychological Impediments; Locus of Control; Agriculture

JEL-codes: D01; D91; O13

Language: English

53 pages, April 2023

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