Publication:
A Conceptual Model of Incomplete Markets and the Consequences for Technology Adoption Policies in Ethiopia

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dc.contributor.authorGurara, Daniel Zerfu
dc.contributor.authorLarson, Donald F.
dc.date.accessioned2014-02-04T20:45:15Z
dc.date.available2014-02-04T20:45:15Z
dc.date.issued2013-10
dc.description.abstractIn Africa, farmers have been reluctant to take up new varieties of staple crops developed to boost smallholder yields and rural incomes. Low fertilizer use is often mentioned as a proximate cause, but some believe the problem originates with incomplete input markets. As a remedy, African governments have introduced technology adoption programs with fertilizer subsidies as a core component. Still, the links between market performance and choices about using fertilizer are poorly articulated in empirical studies and policy discussions, making it difficult to judge whether the programs are expected to generate lasting benefits or to simply offset high fertilizer prices. This paper develops a conceptual model to show how choices made by agents supplying input services combine with household livelihood settings to generate heterogeneous decisions about fertilizer use. An applied model is estimated with data from a panel survey in rural Ethiopia. The results suggest that adverse market conditions limit the adoption of fertilizer-based technologies, especially among resource-poor households. Farmers appear to respond to market signals in the aggregate and this provides a pathway for subsidies to stimulate demand. However, the research suggests that lowering transaction costs, through investments in infrastructure and market institutions, can generate deeper effects by expanding the technologies available to farmers across all pricing outcomes.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/10/18457786/conceptual-model-incomplete-markets-consequences-technology-adoption-policies-ethiopia
dc.identifier.doi10.1596/1813-9450-6681
dc.identifier.urihttps://hdl.handle.net/10986/16895
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6681
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURAL ECONOMICS
dc.subjectAGRICULTURAL EXTENSION
dc.subjectAGRICULTURAL GROWTH
dc.subjectAGRICULTURAL INNOVATIONS
dc.subjectAGRICULTURAL MARKET
dc.subjectAGRICULTURAL MARKETS
dc.subjectAGRICULTURAL POLICY
dc.subjectAGRICULTURAL PRODUCERS
dc.subjectAGRICULTURAL PRODUCTION
dc.subjectAGRICULTURAL PRODUCTION SYSTEMS
dc.subjectAGRICULTURAL PRODUCTIVITY
dc.subjectAGRICULTURAL RESEARCH
dc.subjectAGRICULTURAL SYSTEMS
dc.subjectAGRICULTURAL TECHNOLOGIES
dc.subjectAGRICULTURE
dc.subjectALLOCATIVE EFFICIENCY
dc.subjectALTERNATIVE POLICIES
dc.subjectASSET PRICING
dc.subjectBARLEY
dc.subjectCEREAL PRICE
dc.subjectCHEMICAL FERTILIZER
dc.subjectCHEMICAL FERTILIZERS
dc.subjectCLIMATE
dc.subjectCOMMERCIAL AGENTS
dc.subjectCOMMERCIALIZATION
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCOMPETITIVE MARKETS
dc.subjectCOMPETITIVE PRICES
dc.subjectCONCEPTUAL FRAMEWORK
dc.subjectCREDIT
dc.subjectCROP
dc.subjectCROP CHOICE
dc.subjectCROPPING
dc.subjectCROPS
dc.subjectDECISION MAKING
dc.subjectDELIVERY OF SERVICES
dc.subjectDEMAND
dc.subjectDEMAND CURVES
dc.subjectDEMAND FUNCTION
dc.subjectDEMOGRAPHICS
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectECOLOGICAL CONDITIONS
dc.subjectECONOMETRIC MODELING
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GEOGRAPHY
dc.subjectECONOMIC GROWTH
dc.subjectECONOMICS
dc.subjectECONOMIES
dc.subjectEFFICIENCY
dc.subjectEMPIRICAL STUDIES
dc.subjectENVIRONMENT
dc.subjectENVIRONMENTAL
dc.subjectENVIRONMENTS
dc.subjectEQUITY
dc.subjectEXPECTATIONS
dc.subjectEXPENDITURE
dc.subjectEXTERNALITIES
dc.subjectFAILURES
dc.subjectFARM
dc.subjectFARM HOUSEHOLD
dc.subjectFARM MANAGEMENT
dc.subjectFARM SIZE
dc.subjectFARMERS
dc.subjectFARMING
dc.subjectFARMING ACTIVITIES
dc.subjectFARMING HOUSEHOLDS
dc.subjectFARMING METHODS
dc.subjectFARMING PRACTICES
dc.subjectFARMS
dc.subjectFERTILIZER
dc.subjectFERTILIZER APPLICATION
dc.subjectFERTILIZER APPLICATIONS
dc.subjectFERTILIZER CONSUMPTION
dc.subjectFERTILIZER DISTRIBUTION
dc.subjectFERTILIZER EFFICIENCY
dc.subjectFERTILIZER MARKET
dc.subjectFERTILIZER PRICES
dc.subjectFERTILIZER RESEARCH
dc.subjectFERTILIZER SUBSIDIES
dc.subjectFERTILIZER USE
dc.subjectFINANCIAL MARKETS
dc.subjectFOOD POLICY
dc.subjectFOOD POLICY RESEARCH
dc.subjectFOOD PRICES
dc.subjectFOOD SECURITY
dc.subjectGRAIN MARKET
dc.subjectGROWTH THEORY
dc.subjectHOUSEHOLD FOOD
dc.subjectHUMAN CAPITAL
dc.subjectINCOMPLETE MARKETS
dc.subjectINCREASING RETURNS
dc.subjectINFLUENCE
dc.subjectINORGANIC FERTILIZERS
dc.subjectINPUT PRICES
dc.subjectINPUT USE
dc.subjectINPUTS
dc.subjectINVENTORIES
dc.subjectINVESTMENTS
dc.subjectLABOR MARKET
dc.subjectLABOR MARKETS
dc.subjectLAND
dc.subjectLIQUIDITY
dc.subjectMANURE
dc.subjectMARGINAL VALUE
dc.subjectMARKET ACCESS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET DEVELOPMENT
dc.subjectMARKET FAILURE
dc.subjectMARKET REFORMS
dc.subjectMARKET RESEARCH
dc.subjectMARKET RISKS
dc.subjectMARKET STRUCTURE
dc.subjectMARKETING
dc.subjectMARKETPLACE
dc.subjectMAXIMUM LIKELIHOOD METHOD
dc.subjectMEASUREMENT
dc.subjectMODELS
dc.subjectMONOPOLY
dc.subjectOPPORTUNITY COSTS
dc.subjectOPTIMIZATION
dc.subjectOPTIONS
dc.subjectORGANIC CHEMICAL
dc.subjectOUTCOMES
dc.subjectPESTICIDES
dc.subjectPHOSPHATE
dc.subjectPHOSPHATE FERTILIZERS
dc.subjectPOLICY INSTRUMENTS
dc.subjectPOLITICAL ECONOMY
dc.subjectPRICE
dc.subjectPRICE RISK
dc.subjectPRICE VOLATILITY
dc.subjectPRICES
dc.subjectPRICING
dc.subjectPRODUCERS
dc.subjectPRODUCT
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFIT MAXIMIZATION
dc.subjectPROFITS
dc.subjectPROPERTY
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC GOODS
dc.subjectRAINFALL VARIABILITY
dc.subjectRESOURCE CONSERVATION
dc.subjectRESOURCES
dc.subjectRETAIL
dc.subjectRISK AVERSE
dc.subjectRISK AVERSION
dc.subjectRISK MANAGEMENT
dc.subjectSALES
dc.subjectSMALLHOLDER AGRICULTURE
dc.subjectSOIL SCIENTISTS
dc.subjectSPREAD
dc.subjectSTOCK
dc.subjectSTOCKS
dc.subjectSTORAGE
dc.subjectSUBSIDIES
dc.subjectSUBSIDY
dc.subjectSUBSTITUTE
dc.subjectSUBSTITUTES
dc.subjectSUNK COSTS
dc.subjectSUPPLIER
dc.subjectSUPPLY
dc.subjectSUPPLY CHAIN
dc.subjectSUPPLY CHAINS
dc.subjectSUPPLY CURVE
dc.subjectSURPLUS
dc.subjectTHEORY
dc.subjectTRADE
dc.subjectTRADE POLICY
dc.subjectTRANSACTION COSTS
dc.subjectTRANSACTIONS COSTS
dc.subjectTROPICAL AGRICULTURE
dc.subjectUREA
dc.subjectVALUE
dc.subjectVALUE OF OUTPUT
dc.subjectVALUES
dc.subjectVARIABLES
dc.subjectWEALTH
dc.subjectWHEAT
dc.subjectWHOLESALERS
dc.subjectpanel selection model
dc.titleA Conceptual Model of Incomplete Markets and the Consequences for Technology Adoption Policies in Ethiopiaen
dspace.entity.typePublication
okr.crosscuttingsolutionareaClimate Change
okr.crossref.titleA Conceptual Model of Incomplete Markets and the Consequences for Technology Adoption Policies in Ethiopia
okr.date.disclosure2013-10-01
okr.date.doiregistration2025-04-10T11:44:18.987487Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/10/18457786/conceptual-model-incomplete-markets-consequences-technology-adoption-policies-ethiopia
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeAgriculture
okr.globalpracticeEnvironment and Natural Resources
okr.globalpracticeFinance and Markets
okr.guid638501468257056004
okr.identifier.doi10.1596/1813-9450-6681
okr.identifier.externaldocumentum000158349_20131030111318
okr.identifier.internaldocumentum18457786
okr.identifier.reportWPS6681
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/30/000158349_20131030111318/Rendered/PDF/WPS6681.pdfen
okr.region.administrativeAfrica
okr.region.countryEthiopia
okr.sectorAgriculture, fishing, and forestry::Crops
okr.sectorAgriculture, fishing, and forestry::General agriculture, fishing and forestry sector
okr.themeRural development :: Rural markets
okr.topicEnvironmental Economics and Policies
okr.topicMacroeconomics and Economic Growth::Markets and Market Access
okr.topicEconomic Theory and Research
okr.topicAgriculture::Fertilizers
okr.topicAgriculture::Climate Change and Agriculture
okr.topicEnvironment
okr.unitAgriculture and Rural Development Team, Development Research Group
okr.volume1 of 1
relation.isAuthorOfPublicationccfad8dc-1a1e-50df-9b84-ea4470d50b39
relation.isAuthorOfPublication.latestForDiscoveryccfad8dc-1a1e-50df-9b84-ea4470d50b39
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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