Tag

scale_economies

2 cards

DevelopmentRCT
Extensive Margin Investment Jump
Providing rainfall index insurance increased the probability of planting cash crops by 6 percentage points (p = 0.041) on the extensive margin, but caused no measurable change in input investments among producers already in the top distribution tier of cash crop farming.
DevelopmentRCT
Extensive Margin Scale Threshold in Crop Adoption
Insurance provision drove investment increases strictly on the extensive margin (shifting non-cash-crop farmers to positive production, p = 0.041) with a discrete jump once positive planting occurred, but had zero impact on the intensive margin for top-tier producers.