Envy and Agricultural Innovation in Africa: An Experimental Case Study from Ethiopia

Abstract

This paper examines the impact of envy or related social preferences on agricultural innovation in Ethiopia by combining experimental and household survey data. In the first stage of a money burning game, income inequality is induced by providing differential endowments and enabling subjects to play a lottery. In the second stage, people are allowed to decrease (‘burn’) other players’ money at their own expense. Empirical results indicate that the level of agricultural adoption in these four communities is correlated to the level of envy captured through the experimental games.

Keywords: Ethiopia, Envy, Money Burning Games, Agricultural Innovations

JEL Classification: C93, D03, O12, O55