The Effects of Risk Preferences on the Adoption of Post-Harvest Technology: Evidence from Rural Cambodia |
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| Authors: | Daichi Shimamoto Hiroyuki Yamada Ayako Wakano |
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| Institution: | 1. Waseda Institute of Political Economy, Waseda University, Tokyo, Japan;2. Graduate School of Economics, Keio University, Tokyo, Japan;3. Graduate School of Economics, Osaka University, Osaka, Japan;4. Graduate School of Economics, Keio University, Tokyo, Japan |
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| Abstract: | We investigate how rice farmers’ risk preferences affect the adoption of post-harvest technology in Cambodia, focusing on moisture meters. We find that risk-averse farmers are more likely to adopt moisture meters, although the degree of farmers’ loss aversion or the extent to which they tended to overweight small probabilities do not affect the adoption. In the setting of our study, the effects of farmers’ risk preferences on agricultural technology adoption can be described by using expected utility theory. However, controlling for loss aversion and probability weighting improves the precision of examining the effects of farmers’ risk preferences on adoption. |
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