Bounded Rationality, Social Capital and Technology Adoption in Family Farming: Evidence from Cocoa-Tree Crops in Ivory Coast

In this paper, we allege that the hypothesis in favor of bounded rationality is a plausible explanation when it comes to better understanding the sluggish pace of adoption of best available tree crop farming techniques in poor small-scale rural communities. Our research builds on data collection and analysis of cocoa farming in Ivory Coast. Firstly, we find that the cognitive scarcity under which smallholder farmers make their decisions, in particular, satisficing behavior and fast and frugal heuristics, outweigh the scarcity of financial and human resources. Secondly, we show that the structure of the environment measured through various dimensions of social capital influences human rationality and decision-making. On the one hand, the greater smallholder farmers’ civic capital (solidarity, reciprocity, trustworthiness, cooperation), the more likely they are to modify their farming practices (p < 0.05) and, more specifically, to exchange information, learn, and eventually revise these practices. On the other hand, the greater the number of organizations the farmers participate in, the greater the probability of modifying their practices (p < 0.01). Information about farming techniques disseminates through weak bridging ties built within agricultural organizations (e.g., cooperatives, extension services) rather than through strong bonding ties between family or diaspora members.

The Long-Term Costs of Government Surveillance: Insights from Stasi Spying in East Germany

ABSTRACT We investigate the long-run effects of government surveillance on civic capital and economic performance, studying the case of the Stasi in East Germany. Exploiting regional variation in the number of spies and administrative features of the system, we combine a border discontinuity design with an instrumental variable strategy to estimate the long-term, post-reunification effect of government surveillance. We find that a higher spying density led to persistently lower levels of interpersonal and institutional trust in post-reunification Germany. We also find substantial and long-lasting economic effects of Stasi surveillance, resulting in lower income, higher exposure to unemployment, and lower self-employment.