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The processes and consequences of household decision-making are
investigated using multi-disciplinary research methods of decision
analysis that involves statistical, mathematical, psychological,
anthropological, and econometric techniques brought together in a
holistic manner. This study is focused in the Ada and Selale
regions of the Central Ethiopian Highlands. The technologies
studied are fertilizer, improved crop varieties, pesticides, and
cross-bred cows. Goals and strategies of households, institutions,
access to information, indigenous knowledge, risk taking behavior,
and their impacts on household decision-making were studied.
Technology adoption was studied under a variety of controllable
(e.g., allocation of labor) and uncontrollable (natural factors
such as rainfall or government intervention) environments. The
findings demonstrated that agricultural producers can attain
greater increases in food production and the efficiency with which
it is produced if they adopt at least two innovations. The study
revealed that non-physical resources such as indigenous knowledge
and institutions play a fundamental role on the ability of
producers to achieve increases in food production. For development
to be sustained, therefore, investments in physical resources
should be matched with those in non-physical resources.
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