Do Discount Rates Change over Time? Experimental Evidence from Ethiopia

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This artefactual experiment in Ethiopia tested the hyperbolic discounting hypothesis by comparing time discounting over cash and consumption goods, using real payoffs. It found no difference in elicited time preferences between cash and consumption goods (tradable or final), which could be the result of missing markets in rural Ethiopia, and there was some evidence of time-inconsistent preferences.

 

Experiments

Market Imperfections and Farm Technology Adoption Decisions: A Case Study from the Highlands of Ethiopia

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This examination of the impacts of market and institutional imperfections on technology adoption found that Ethiopian farmers’ decisions to adopt fertilizer significantly and negatively depended on whether they also adopted soil conservation, but not vice versa. Market imperfections were significant factors in explaining variations in decisions to adopt farm technology, such that relieving market imperfections could increase adoption of farm technologies.

 

Agriculture, Policy Design

Valuation of community forestry in Ethiopia: a contingent valuation study of rural households

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EfD Authors:

Community forestry projects in Ethiopia have been implemented using the top–down approach, which may have contributed to the failure of most of these projects. The so-called community plantations practically belonged to the government and the labour contribution of the local communities in the establishment of the plantations was mainly in exchange for wages.

Forestry, Policy Design

Agricultural Extension and Risk in Low Income Countries: Experimental Evidence from Ethiopia

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EfD Authors:

Livelihoods in low-income developing countries are generally undiversified and focus on crop production and animal raising. These activities are inherently risky and investment and production decisions by farm households are therefore made within environments that are affected by risk.

Agriculture, Experiments