Scandinavian Working Papers in Economics

CLTS Working Papers,
Norwegian University of Life Sciences, Centre for Land Tenure Studies

No 8/17: Probability Weighting and Input Use Intensity in a State-Contingent Framework

Stein T. Holden () and John Quiggin
Additional contact information
Stein T. Holden: Centre for Land Tenure Studies, Norwegian University of Life Sciences, Postal: Centre for Land Tenure Studies, Norwegian University of Life Sciences, P.O. Box 5003, NO-1432 Aas, Norway
John Quiggin: School of Economics, University of Queensland, Postal: Brisbane St Lucia, QLD 4072, Australia

Abstract: Climate risk represents an increasing threat to poor and vulnerable farmers in drought-prone areas of Africa. This study assesses the fertilizer adoption responses of food insecure farmers in Malawi, where Drought Tolerant (DT) maize was recently introduced. A field experiment, eliciting risk attitudes of farmers, is combined with a detailed farm household survey. A state-contingent production model with rank-dependent utility preferences is estimated. Over-weighting of small probabilities was associated with less use of fertilizer on all maize types and particularly so on the more risky improved maize types.

Keywords: Climate risk; state-contingent production; subjective probability weighting; technology adoption; adaptation; maize; Drought Tolerant maize; fertilizer use

JEL-codes: C93; D03; O33; Q12; Q18

40 pages, May 5, 2017

Full text files


Download statistics

Questions (including download problems) about the papers in this series should be directed to Kateryna Krutskykh ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2018-01-23 23:36:20.