The Importance of Learning in the Adoption of High‐Yielding Variety Seeds

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Abstract
To date, due to the lack of panel data, most micro‐level empirical studies of technology adoption have used cross‐sectional data. These studies cannot examine the dynamic processes of adoption such as learning. This article uses panel data to study the adoption of a new high‐yielding variety seed. First, it establishes that learning is an important variable in the adoption process. Second, it establishes that cross‐sectional estimates of a dynamic process are biased but that the extent of this bias may be small. Third, it illustrates the econometric methods needed to estimate a dynamic model when controlling for unobserved household heterogeneity.

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