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Can temporary subsidies and agricultural extension build sustainable adoption?

Markus Goldstein's picture
A fair number of governments in developing countries support agricultural subsidy programs.   One of the arguments for these subsidies is that there is some kind of market failure (information is often cited) that the subsidy is meant to overcome.    So, that means when the subsidy is removed (which is the politically hard part), we should see adoption sustained.    There isn’t much clear evidence on this, but two recent papers provide some insight.