New study in five African countries reveals how poverty and gender influence smallholder farmers' decisions under risk
Behavioral economist, AIAS-AUFF Fellow Haftom Bayray contributes to new research on African smallholder farmers showing that economic and social factors impact decision-making patterns, with implications for agricultural policy and support programs.
A recent study published in the scientific Journal of Behavioral and Experimental Economics has highlighted significant variations in how farmers from Eastern and Northern Africa approach risk, often in ways that seem inconsistent.
Involving 2,319 smallholder farmers
The study that has AIAS-AUFF Fellow Haftom Bayray onboard involves over 2,300 smallholder farmers from Kenya, Uganda, Tanzania, Tunisia and Morocco. The international team of researchers found that almost half (48%) of participants showed some inconsistency in their risk-related choices when presented with a multiple price elicitation task.
Inconsistencies due to social and economic factors
According to the researchers, these inconsistencies may stem from a variety of social and economic factors, such as poverty and gender and the interaction between gender and educational level. Interestingly, while education alone did not appear to influence decisions in most cases, session-specific factors, such as the timing of the experiment or individual differences among interviewers, also contributed to variations in farmers' responses.
Therefore, in addition to individual conditions such as education, poverty and gender, risk elicitation studies should also pay attention to situational factors such as the location and the team managing the experimental sessions.
Creating more effective policy and support strategies
The research is relevant for policymakers and agricultural organizations when designing support programs for smallholder farmers. Failing to account for these factors could lead to inaccurate conclusions about farmers' risk tolerance and decision-making. By better understanding the patterns and causes of these inconsistencies, the novel study offers a roadmap for creating more effective support strategies tailored to the needs of smallholder farmers in Africa.
Access the full scientific article here
‘Understanding inconsistencies in risk attitude elicitation games: Evidence from smallholder farmers in five African countries’ by Bayray Kahsay et al in: Journal of Behavioral and Experimental Economics, Vol 113, 2024:
https://doi.org/10.1016/j.socec.2024.102307
Contact
Haftom Bayray, AIAS-AUFF Fellow
E-mail: haftom@aias.au.dk
Aarhus Institute of Advanced Studies, AIAS
Høegh-Guldbergs Gade 6B
DK-8000 Aarhus C
Denmark