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Joint estimation of information acquisition and adoption of new technologies under uncertainty
Author(s) -
Abdulai Awudu,
Monnin Pierre,
Gerber Jacques
Publication year - 2008
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.1422
Subject(s) - tanzania , scale (ratio) , human capital , market liquidity , estimation , production (economics) , affect (linguistics) , economics , empirical evidence , business , sample (material) , joint (building) , marketing , microeconomics , finance , economic growth , socioeconomics , management , engineering , architectural engineering , linguistics , philosophy , physics , chemistry , epistemology , quantum mechanics , chromatography
This article develops a framework to examine households' joint decision to acquire information on new technologies and the adoption of the technology in the presence of uncertainty. The empirical application involved a sample of 406 dairy farmers in Tanzania. Education, scale of production, household size, age, and liquidity constraints are hypothesized to be the determinants of information acquisition and adoption decisions. The empirical evidence indicates that information acquisition and adoption decisions are made jointly. The findings also show that human capital and scale of operation positively and significantly affect the decision to acquire information and to adopt the technology, while liquidity constraints negatively impact on the decision to adopt, as well as the extent of adoption. Copyright © 2008 John Wiley & Sons, Ltd.