Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/224032
Authors: 
Chowdhury, Shyamal
Smits, Joeri
Sun, Qigang
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13590
Abstract: 
Do constraints to technology adoption vary by behavioral traits? We randomize 150 villages in Bangladesh into being offered standard microcredit, loans with a grace period, the choice between those two contracts, and control. No discernible average effects are detected on the adoption of mechanized irrigation, hybrid seeds, and chemical fertilizers. However, credit access enhances technology adoption among present-biased farmers, whose output and profits increase. These effects are driven by the standard contract and choice villages, as present-biased farmers select out of the grace period contract. This suggests offering commitment and screening applicants on present bias to enhance agricultural technology adoption.
Subjects: 
microfinance
technology adoption
time inconsistency
Bangladesh
JEL: 
D15
G51
O13
O33
Q14
Q16
Document Type: 
Working Paper

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