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Begin New Search Topic Agriculture Author Dean Karlan

1. Self-Selection into Credit Markets: Evidence from Agriculture in Mali

Author:
Dean Karlan, Bram Thuysbaert, Christopher Udry, and Lori Beaman
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
We partnered with a micro-lender in Mali to randomize credit offers at the village level. Then, in no-loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with respect to agricultural investment. In loan-villages, we gave grants to a random subset of farmers who (endogenously) did not borrow. These farmers have lower – in fact zero – marginal returns to the grants. Thus we find important heterogeneity in returns to investment and strong evidence that farmers with higher marginal returns to investment self-select into lending programs.
Topic:
Agriculture and Economics
Political Geography:
Africa

2. Agricultural Decisions after Relaxing Credit and Risk Constraints

Author:
Dean Karlan, Robert Osei, Christopher Udry, and Isaac Osei-Akoto
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The investment decisions of small-scale farmers in developing countries are conditioned by the farmers' financial environment. Binding credit-market constraints and incomplete insurance can reduce investment in activities with high expected profits. We conducted several experiments in northern Ghana in which farmers were randomly assigned to receive cash grants, grants of or opportunities to purchase rainfall-index insurance, or a combination of the two. Demand for index insurance is strong, and insurance leads to significantly larger agricultural investment and riskier production choices in agriculture. The salient constraint to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face, farmers are able to find resources to increase expenditure on their farms. Demand for insurance in subsequent years is strongly increasing in a farmer's own receipt of insurance payouts, and with the receipt of payouts by others in the farmer's social network. Both investment patterns and the demand for index insurance are consistent with the presence of important basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered.
Topic:
Agriculture, Economics, Markets, Food, and Foreign Direct Investment

3. Water price policy analysis in China:An experimental approach

Author:
Jikun Huang, Qiuqiong Huang, Jinxia Wang, Jun Xia, Scott Rozelle, and Dean Karlan
Publication Date:
01-2007
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Water scarcity is one of the key problems that affect northern China, an area that covers 40 percent of the nation's cultivated area and houses almost half of the population. The water availability per capita in North China is only around 300 m per capita, which is less than one seventh of the national average (Ministry of Water Resources, 2002). At the same time, expanding irrigated cultivated area, the rapidly growing industrial sector and an increasingly wealthy urban population demand rising volumes of water (Crook, 2000, Wang, et al., 2005). As a result, groundwater resources are diminishing in large areas of northern China (Wang, et al., 2005). For example, between 1958 and 1998, groundwater levels in the Hai River Basin fell by up to 50 meters in some shallow aquifers and by more than 95 meters in some deep aquifers (Ministry of Water Resource, et al., 2001).
Topic:
Agriculture, Development, Environment, Government, and Industrial Policy
Political Geography:
China