Production Risks and Food Security under Alternative Technology Choices in Malawi: Application of a Multinomial Endogenous Switching Regression

Journal of Agricultural Economics

Volumn 66, Issue 3, 2015, Pages 640-659

  Kassie, Menale ^a,b   Teklewold, Hailemariam ^b   Marenya, Paswel ^b   Jaleta, Moti ^b   Erenstein, Olaf ^b  

^a International Maize and Wheat Improvement Center (CIMMYT)   (Kenya)

^b International Maize and Wheat Improvement Center (CIMMYT)   (Ethiopia)

Author keywords

Cost of risk; Downside risk; Food security; Joint adoption; Malawi; Sub saharan africa

Indexed keywords

AGRONOMY; ALTERNATIVE AGRICULTURE; CROP PRODUCTION; FOOD SECURITY; RISK; STRATEGIC APPROACH; TECHNOLOGY ADOPTION;

MALAWI;

ZEA MAYS;

EID: 84939419873     PISSN: 0021857X     EISSN: 14779552     Source Type: Journal    
DOI: 10.1111/1477-9552.12099     Document Type: Article

References (46)

1. Allmaras, R., Schomberg, H. H., Douglas, C. L. and Dao, T. H. Jr. 'Soil organic carbon sequestration potential of adopting conservation tillage in US croplands', Journal of Soil and Water Conservation, Vol. 55, (2000) pp. 365-373.
2. Antle, J. M. 'Testing for stochastic structure of production: A flexible moment-based approach', Journal of Business and Economic Statistics, Vol. 1, (1983) pp. 192-201.
3. Antle, J. 'Econometric estimation of producers' risk attitudes', American Journal of Agricultural Economics, Vol. 69, (1987) pp. 509-522.
4. Antle, J. M. and Diagana, B. 'Creating incentives for the adoption of sustainable agricultural practices in developing countries: The role of soil carbon sequestration', American Journal of Agricultural Economics, Vol, 85, (2003) 1178-1184.
5. Asfaw, S., McCarty, N., Lipper, L., Arslan, A., Cattaneo, A. and Kachulu, M. Climate Variability, Adaptation Strategies and Food Security in Malawi. ESA Working Paper No. 14-08. Agricultural Development Economics Division Food and Agriculture Organization of the United Nations, 2014.
6. Binswanger, H. P. 'Attitudes toward risk: Theoretical implications of an experiment in rural India', The Economic Journal, Vol. 91, (1983) pp. 867-890.
7. Bourguignon, F., Fournier, M. and Gurgand, M. 'Selection bias corrections based on the multinomial logit model: Monte-Carlo comparisons', Journal of Economic Surveys, Vol. 21, (2007) pp. 174-205.
8. Carter, D. W. and Milon, J. W. 'Price knowledge in household demand for utility services', Land Economics, Vol. 81, (2005) pp. 265-283.
9. Cavatassi, R., Lipper, L. and Narloch, U. 'Modern variety adoption and risk management in drought prone areas: Insights from the sorghum farmers of eastern Ethiopia', Agricultural Economics, Vol. 42, (2011) pp. 279-292.
10. Chavas, J. P. and Holt, M. T. 'Economic behavior under uncertainty: A joint analysis of risk preferences and technology', Review of Economics and Statistics, Vol. 78, (1996) pp. 329-335.
11. Chinsinga, B. The Political Economy of Agricultural Policy Processes in Malawi: A Case Study of the Fertilizer Subsidy Programme, Future Agricultures Consortium Working Paper 39, 2012. Available at: http://r4d.dfid.gov.uk/PDF/Outputs/Futureagriculture/FAC_Working_Paper_039.pdf (last accessed October 2014).
12. Denning, G., Kabambe, P., Sanchez, P., Malik, A., Flor, R., et al. 'Input subsidies to improve smallholder maize productivity in Malawi: Toward anAfrican Green Revolution', PLoS Biol, Vol. 7, (2009) pp. 1-10.
13. Derlagen, C. Analysis of Incentives and Disincentives for Maize in Malawi. Technical notes series (MAFAP, FAO, Rome, 2012).
14. Di Falco, S., and Chavas, J. P. 'On crop biodiversity, risk exposure and food security in the highlands of Ethiopia', American Journal of Agricultural Economics, Vol. 91, (2009) pp. 599-611.
15. Di Falco, S. and Veronesi, M. On Adaptation to Climate Change and Risk Exposure in the Nile Basin of Ethiopia, IED working paper 15, ETH Zurich, 2011.
16. Di Falco, S. and Veronesi, M. 'Managing environmental risk in presence of climate change: The role of adaptation in the Nile Basin of Ethiopia', Environmental and Resource Economics, Vol. 57, (2014) pp. 553-577.
17. Di Falco, S., Adinolfi, F., Bozzola, M. and Capitanio, F. 'Crop insurance as a strategy for adapting to climate change', Journal of Agricultural Economics, Vol. 65, (2014) pp. 485-504.
18. Du, X., Hennessy, D. and Yu, C. 'Testing day's conjecture that more nitrogen decreases crop yield skewness', American Journal of Agricultural Economics, Vol. 94, (2012) pp. 225-237.
19. Emily, S. and Tadesse, F. Household and Plot Level Impact of Sustainable Land and Watershed Management (SLWM) Practices in the Blue Nile, Working Paper 42, IFPRI- Ethiopia Strategy Support Program II, Ethiopia, 2012.
20. Fafchamps, M. 'Sequential labour decisions under uncertainty: An estimable household model of west Africa farmers', Econometrica, Vol. 61(5), (1993) 197.
21. Heckman, J. J., Tobias, J. L. and Vytlacil, E. J. 'Four parameters of interest in the evaluation of social programs', Southern Economic Journal, Vol. 68, (2001) pp. 210-233.
22. IFAD, 'Enabling poor rural people to overcome poverty'. Itally, Rome, (Available at http://www.ifad.org/operations/projects/regions/Pf/factsheets/malawi.pdf, 2011, pp. 1-11), last accessed, Spetember 2014).
23. Kassie, M., Yesuf, M. and Köhlin, G. The Role of Production Risk in Sustainable Land-Management Technology Adoption in the Ethiopian Highlands, Environment for Development (EfD) Discussion Paper (DP) Series, 08-15 (Washington: Resource for the Future, 2008).
24. Kassie, M.G., Kohlin, R., Bluffstone, A. and Holden, S. 'Are soil conservation technologies "win-win?" A case study of Anjeni in the north-western Ethiopian highlands', Natural Resource Forum, Vol. 35, (2011) pp. 89-99.
25. Kassie, M., Hailemariam, T., Moti, J., Marenya, P. and Erenstein, O. __Understanding the adoption of a portfolio of sustainable intensification practices in eastern and southern Africa__, Land use Policy, Vol. 42, (2015) pp. 400-411.
26. Kato, E., Ringler, C., Yesuf, M. and Bryan, E. 'Soil and water conservation technologies: A buffer against production risk in the face of climate change? Insights from the Nile basin in Ethiopia', Agricultural Economics, Vol. 42, (2011) pp. 593-604.
27. Kim, K., and Chavas, P. J. 'Technological change and risk management: An application to the economics of corn production', Agricultural Economics, Vol. 29, (2003) pp. 125-142.
28. Kim, K., Chavas, J-P., Barham, B. and Foltz, J. 'Rice, irrigation and downside risk: A quantile analysis of risk exposure and mitigation on Korean Farms', European Review of Agricultural Economics, Vol. 41, (2014) pp. 775-815 (doi: 10.1093/erae/jbt041).
29. Levinsohn, J. and Petrin, A. 'Estimating production functions using inputs to control for unobservables', Review of Economic Studies, Vol. 70, (2003) pp. 317-341.
30. Mansur, E. T., Mendelsohn, R. and Morrison, W. 'Climate change adaptation: A study of fuel choice and consumption in the US energy sector', Journal of Environmental Economics and Management, Vol. 55, (2008) pp. 175-193.
31. McFadden, D. 'Conditional logit analysis of qualitative choice behavior', in: Zarembka, P. (ed.), Frontiers in Econometrics (Academic Press, New York, 1973, pp. 105-142).
32. Mearns and Norton. Social Dimensions of Climate Change: Equity and Vulnerability in a Warming World (Washington, DC: The World Bank, 2010).
33. Menezes, C., Geiss, C. and Tressler, J. 'Increasing down-side risk', American Economic Review, Vol. 70, (1980) pp. 921-932.
34. Mundlak, Y. 'On the pooling of time series and cross section data', Econometrica, Vol. 64, (1978) pp. 69-85.
35. Ngwira, P. and Khonje, P. T. 'Managing maize diseases through breeding under Malawi field conditions', African Crop Science Conference Proceedings, Vol. 6, (2005) pp. 340-345.
36. Olarinde, L., Oduol, J. B., Binam, J. N., Diagne, A., Njuki, J. and Adekunle, A. A. 'Impact of the adoption of soil and water conservation practices on crop production: Baseline Evidence of the Sub Saharan Africa Challenge Programme', Middle-East Journal of Scientific Research, Vol. 9(1), (2011) pp. 28-40.
37. Pretty, J., Toulmin, C. and Williams, S. 'Sustainable intensification in African agriculture', International Journal of Agricultural Sustainability, Vol. 9, (2011) pp. 5-24.
38. Rasul, G. and Thapa, G. 'Sustainability of ecological and conventional agricultural systems in Bangladesh: An assessment based on environmental, economic and social perspectives', Agricultural Systems, Vol. 79, (2004) pp. 327-351.
39. Tadross, M., Suarez, P., Lotsch, A., Hachigonta, S., Mdoka, M., Unganai, L., Lucio, F., Kamdonyo, D. and Muchinda, M. 'Growing-season rainfall and scenarios of future change in southeast Africa: Implications for cultivating maize', Climate Research, Vol. 40, (2009) pp. 147-161.
40. Teklewold, H., Kassie, M., Shiferaw, B. and Köhlin, G. 'Cropping systems diversification, conservation tillage and modern seed adoption in Ethiopia: Impacts on household income, agro-chemical use and demand for labor', Ecological Economics, Vol. 93, (2013) pp. 85-93.
41. The Montpellier Panel Sustainable Intensification: A New Paradigm for African Agriculture. London: Imperial College London, 2013.
42. Tilman, D., Cassman, K. G., Matson, P. A., Naylor, R. and Polasky, S. 'Agricultural sustainability and intensive production practices', Nature, Vol. 418, (2002) pp. 671-677.
43. Woodfine, A. Using Sustainable Land Management Practices to Adapt to and Mitigate Climate Change in sub-Saharan Africa. Resource guide version 1, 2009. Available at: http://www.caadp.net/pdf/Using%20SLM%20Practices%20to%20Adapt%20and%20Mitigate%20Climate%20Change.pdf, . last accessed September 2014.
44. Wooldridge, J. M. Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA, 2002).
45. Wu, J. J. and Babcock, B. A. 'The choice of tillage, rotation, and soil testing practices: Economic and environmental implications', American Journal of Agricultural Economics, Vol. 80, (1998) pp. 494-511.
46. Yesuf, M., and Bluffstone, R. A. 'Poverty, risk aversion and path dependence in low income countries: Experimental evidence from Ethiopia', American Journal of Agricultural Economics, Vol, 91(4), (2009) 037.