Imperfect Information and Learning: Evidence from Cotton Cultivation in Pakistan

Authors

Amal Ahmad, Department of Economics, University of Massachusetts AmherstFollow

Working Paper Number

2021-03

Publication Date

2021

Abstract

Information problems are pervasive in developing economies and can hinder productivity growth. This paper studies how much rural producers in developing countries can learn from their own experience to redress important information gaps. It builds a model of learning from experience and applies it using a rich dataset on cotton farmers in Pakistan. I test whether farmers learn from cultivation experience about the pest resistance of their seeds and use this information to improve selection and productivity. I find no such learning effect and this conclusion is robust to several parameters that could signal learning. The findings document the difficulty of parsing out and processing information from cultivation experience alone and point to the importance of information provision to producers by the government or external agencies.

DOI

https://doi.org/10.7275/21791999

License

UMass Amherst Open Access Policy

Recommended Citation

Ahmad, Amal, "Imperfect Information and Learning: Evidence from Cotton Cultivation in Pakistan" (2021). Economics Department Working Paper Series. 300.
https://doi.org/10.7275/21791999