ARE at AAEA: Laura Paul: Rain on the Parade: hurdles to adoption of maize with weather-contingent advantages
July 31, 2018
Time: 2:45–4:15 p.m. Monday, Aug. 6
Location: PM Room: Wilson C
Abstract
Both the risk and returns from adopting drought-tolerant maize depend on exogenous weather outcomes. Subjective beliefs about the likelihood of drought and the response of maize to water stress are key to a farmer’s adoption decision, but updating beliefs is a slow process. Drought-tolerant maize can improve household welfare through increased yield stability and income security. However, adoption of drought-tolerant maize is slowed by subjective beliefs about weather and the difficulty of observing the yield response to drought. In this paper, I analytically characterize the role of subjective expectations in weather-contingent technology adoption. Combining rich household survey data with high-frequency spatial climate and yield data, I empirically test this adoption model to show the role of expectations in decision making.
*This is information about one of the 17 people from ARE with a presentation at the 2018 AAEA Annual Meeting Aug. 5–7 in Washington, D.C.
More News
Professor Sumner and Agriculture Leaders Meet with Gov. Brown on Trade Turmoil
New Tariffs Could Cost U.S. Nut and Fruit Industries over $3 Billion, According to Report by Professor Sumner and Ph.D. Student Researcher Hanon
Georgi Gabrielyan: Agricultural Economist at USDA Agricultural Marketing Service Dairy Division
