Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya
Abstract
We model farmers as facing small fixed costs of purchasing fertilizer and assume some are stochastically present biased and not fully sophisticated about this bias. Such farmers may procrastinate, postponing fertilizer purchases until later periods, when they may be too impatient to purchase fertilizer. Consistent with the model, many farmers in Western Kenya fail to take advantage of apparently profitable fertilizer investments, but they do invest in response to small, time-limited discounts on the cost of acquiring fertilizer (free delivery) just after harvest. Calibration suggests that this policy can yield higher welfare than either laissez-faire policies or heavy subsidies. (JEL Q13, Q12, Q16, Q18)
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- Authors
- Duflo, E., Kremer, M., & Robinson, J.
- Affiliations
- National Bureau of Economic Research (US)
- Brookings Institution (US)
- University of California, Santa Cruz (US)
- Venue
- American Economic Review
- Publisher
- American Economic Association
- Published
- 2011-10-01
- Volume
- 101
- Issue
- 6
- Pages
- 2350-2390
- ISSN
- 0002-8282 (ISSN-L)
- OpenAlex
- W3122219528
- Cited by
- 1,170
- References
- 0
- Citations by year
- 2026: 94 · 2025: 68 · 2024: 75 · 2023: 84 · 2022: 73 · 2021: 105 · 2020: 79 · 2019: 77 · 2018: 103 · 2017: 78 · 2016: 58 · 2015: 74 · 2014: 60 · 2013: 81 · 2012: 26
- FWCI
- 32.64
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- American Economic Review (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
- Social Sciences › Safety Research › Experimental Behavioral Economics Studies
- Life Sciences › Agricultural and Biological Sciences › General Agricultural and Biological Sciences › Agricultural Innovations and Practices
- Keywords
- fertilizer use, nudging, present bias, procrastination, fertilizer subsidies, smallholder farmers, agricultural investment, welfare effects, Western Kenya
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