Social and Behavioral Sciences Commons^™

Can Peers Improve Agricultural Revenue?, Tisorn Songsermsawas, Kathy Baylis, Ashwini Chhatre, Hope Michelson

Kathy Baylis

Crop revenues vary greatly among farmers and the source of that variation is not fully understood. Using a household survey from India, we estimate peer effects on cash crop revenue. Results show that 60% of farmers' revenue can be explained by peers. Peer effects in input expenditure and land allocation cannot fully explain the variation in revenue, implying peers may also associate with management, negotiation and marketing strategies. Although caste-based networks are important, their effect is substantially smaller than that of self-reported peers. Peer effects are strongest for agricultural peers and in the cultivation of a new crop.