Article published on World Development
An article authored by Bereket Kebede (DEV) and Daniel John Zizzo (Newcastle University) has just been published online on World Development.
The article is open access and so can be downloaded free from http://authors.elsevier.com/sd/article/S0305750X14003349.
Abstract: We run an experiment in Ethiopia where farmers can use their own money to decrease the money of others (money burning). The data support the prediction from an inequality aversion model based on absolute income differences; but there is no support for an inequality aversion model based on comparison with mean payoff of others. Experimentally measured money burning on the village level is negatively correlated to real-life agricultural innovations. This result is robust even when data from another independent survey than the current research are used. This underscores the importance of social preferences in agricultural innovations in developing countries.