Privatization of a public good (the management of sewage treatment centers in Dakar, Senegal) leads to an increase in the productivity of downstream sewage dumping companies and a decrease in downstream prices of the services they provide to households. We use the universe of legal dumping of sanitation waste from May 2009 to May 2018 to show that legal dumping increased substantially following privatization-on average an increase of 74%, or an increase of about 1640 trips to treatment centers each month. This is due to increased productivity of all trucks, not just those associated with the company managing the privatized treatment centers.
View Article and Find Full Text PDFThe proliferation of mobile money across developing countries has led to an increase in availability of mobile payment systems. This decreases the organizational complexity of allowing more flexible payment terms for customers. We test whether subsidies, deposit requirements, and access to a mobile money savings vehicle increase the propensity of households to purchase an improved but more expensive sanitation service.
View Article and Find Full Text PDFWe construct a model of technology adoption with agents differing on two dimensions: their cognitive ability and their receptiveness to advice. While cognitive ability unambiguously speeds adoption, receptiveness to advice may speed adoption for individuals with low cognitive ability, but slow adoption for individuals with high cognitive ability. We conduct economic experiments measuring US farmers' cognitive ability and receptiveness to advice and examine how these characteristics impact their speed of adoption of genetically modified (GM) corn seeds.
View Article and Find Full Text PDFUnderlying preferences are often considered to be persistent, and are important inputs into economic models. We first conduct an extensive review of the disparate literature studying the stability of preferences measured in experiments. Then, we test the stability of individuals' choices in panel data from rural Paraguay over almost a decade.
View Article and Find Full Text PDF