| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP7416 |
| DP7416 Disasters implied by equity index options | |
| David Backus; Mikhail Chernov; Ian Martin | |
| 发表日期 | 2009-08-16 |
| 出版年 | 2009 |
| 语种 | 英语 |
| 摘要 | While many developing-country policymakers see heavy fertilizer subsidies as critical to raising agricultural productivity, most economists see them as distortionary, regressive, environmentally unsound, and argue that they result in politicized, inefficient distribution of fertilizer supply. 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. Even when relatively patient, 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. Later discounts have a smaller impact, and when given a choice of price schedules, many farmers choose schedules that induce advance purchase. Calibration suggests such small, time-limited discounts yield higher welfare than either laissez faire or heavy subsidies by helping present-biased farmers commit to fertilizer use without inducing those with standard preferences to substantially overuse fertilizer. |
| 主题 | Development Economics |
| 关键词 | Technology adoption Hyperbolic discounting |
| URL | https://cepr.org/publications/dp7416 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/536253 |
| 推荐引用方式 GB/T 7714 | David Backus,Mikhail Chernov,Ian Martin. DP7416 Disasters implied by equity index options. 2009. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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