Abstract: I develop a two-period stochastic dynamic programming model to
explain the interaction between fertilizer use and off-farm labor
supply. Using a well-known sample of Indian farmers, I find that
fertilizer use responds strongly to the village wage and that
irrigation raises fertilizer use, while larger farmers use less
fertilizer (per acre) than smaller ones. Response to one-sided
production shocks, is stronger for female labor, indicating that
it is more important for smoothing consumption than male labor.
Full paper (535 KB PDF)
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Last update: July 16, 1997