48 Boulevard Jourdan
Information about this author at RePEc
NBER Working Papers and Publications
in The Economics of Poverty Traps, Christopher B. Barrett, Michael R. Carter, and Jean-Paul Chavas, editors
|September 2014||Subsidies and the Persistence of Technology Adoption: Field Experimental Evidence from Mozambique|
with Michael R. Carter, Dean Yang: w20465
We report the results of a randomized experiment testing impacts of subsidies for modern agricultural inputs in rural Mozambique. One-time provision of a voucher for fertilizer and improved seeds leads to substantial increases in fertilizer use, which persist through two subsequent agricultural seasons. Voucher receipt also leads to large, persistent increases in household agricultural production and market sales, per capita consumption, assets, durable good ownership, and housing improvements.
Consistent with learning models of the adoption decision, we find positive treatment effects on farmers' estimated returns to the input package. We also document positive cross-household treatment spillovers: one's own fertilizer use rises in the number of social network members receiving vouchers....