Tag

allocative_efficiency

2 cards

DevelopmentObservational Study
Factor Market Allocative Disequilibrium
The marginal product of purchased cash inputs is 4.5 (statistically different from market price 1.0 at p < 0.05), indicating severe input underuse. The marginal product of labor is 484 Birr/month versus a market wage of 1,176 Birr/month (p < 0.01), indicating surplus family labor.
DevelopmentRCT
Palliative Insurance Demand Pattern
Marginal product of inputs negatively predicts actual insurance purchase in interlinked villages (coefficient = -0.0221, p < 0.01), sum insured (coefficient = -30.91, p < 0.01), and own cash spent (coefficient = -1.050, p < 0.01). Chemical fertilizer use positively predicts uptake (coefficient = +0.177, p < 0.05).