Technological Innovations, Downside Risk, and the Modernization of Agriculture

We use a randomized experiment in India to show that improved technology enhances agricultural productivity by crowding in modern inputs and cultivation practices. Specifically, we show that a new rice variety that reduces downside risk by providing flood tolerance has positive effects on adoption o...

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Veröffentlicht in:The American economic review Jg. 106; H. 6; S. 1537 - 1561
Hauptverfasser: Emerick, Kyle, de Janvry, Alain, Sadoulet, Elisabeth, Dar, Manzoor H.
Format: Journal Article
Sprache:Englisch
Veröffentlicht: Nashville American Economic Association 01.06.2016
Schlagworte:
Adoption of innovations
Agricultural economics
Agricultural production
Agricultural technology
Agriculture
Crowding
Cultivation
Fertilizers
Innovations
Modernization
Productivity
Rice
Risk
Risk reduction
Seeds
Shorter Papers
Studies
Technological change
Technology
Tolerance
ISSN:0002-8282, 1944-7981
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Abstract We use a randomized experiment in India to show that improved technology enhances agricultural productivity by crowding in modern inputs and cultivation practices. Specifically, we show that a new rice variety that reduces downside risk by providing flood tolerance has positive effects on adoption of a more labor-intensive planting method, area cultivated, fertilizer usage, and credit utilization. We find that a large share of the expected gains from the technology comes from crowding in of other investments. Therefore, improved technologies that reduce risk by protecting production in bad years have the potential to increase agricultural productivity in normal years.
AbstractList We use a randomized experiment in India to show that improved technology enhances agricultural productivity by crowding in modern inputs and cultivation practices. Specifically, we show that a new rice variety that reduces downside risk by providing flood tolerance has positive effects on adoption of a more labor-intensive planting method, area cultivated, fertilizer usage, and credit utilization. We find that a large share of the expected gains from the technology comes from crowding in of other investments. Therefore, improved technologies that reduce risk by protecting production in bad years have the potential to increase agricultural productivity in normal years.
We use a randomized experiment in India to show that improved technology enhances agricultural productivity by crowding in modern inputs and cultivation practices. Specifically, we show that a new rice variety that reduces downside risk by providing flood tolerance has positive effects on adoption of a more labor-intensive planting method, area cultivated, fertilizer usage, and credit utilization. We find that a large share of the expected gains from the technology comes from crowding in of other investments. Therefore, improved technologies that reduce risk by protecting production in bad years have the potential to increase agricultural productivity in normal years. (JEL O13, O33, Q14, Q15, Q16 )
Author Emerick, Kyle
Sadoulet, Elisabeth
de Janvry, Alain
Dar, Manzoor H.
Author_xml – sequence: 1
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  givenname: Alain
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– sequence: 3
  givenname: Elisabeth
  surname: Sadoulet
  fullname: Sadoulet, Elisabeth
– sequence: 4
  givenname: Manzoor H.
  surname: Dar
  fullname: Dar, Manzoor H.
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Snippet We use a randomized experiment in India to show that improved technology enhances agricultural productivity by crowding in modern inputs and cultivation...
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SubjectTerms Adoption of innovations
Agricultural economics
Agricultural production
Agricultural technology
Agriculture
Crowding
Cultivation
Fertilizers
Innovations
Modernization
Productivity
Rice
Risk
Risk reduction
Seeds
Shorter Papers
Studies
Technological change
Technology
Tolerance
Title Technological Innovations, Downside Risk, and the Modernization of Agriculture
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