Using panel data from a survey conducted in 2006 and 2008 of 177 market-oriented farmers in central Chile, we investigate investment under imperfect capital markets. Specifically we determine the impact of formal credit constraints on fixed investment. By controlling for endogeneity problems, we...

Household characteristics are commonly used to explain variation in smallholder efficiency levels. The underlying assumption is that differences in intended behavior are well described by such variables, while there is no a priori reason that this is the case. Moreover, heterogeneity in farmer...

Appeals for targeting agricultural R&D in developing countries more explicitly to the needs of poor smallholders in marginal areas are often countered by arguments of efficiency. Others, however, taking a political economy perspective, argue that there is a bias in the selection of agricultural...