Locus of Control and Economic Decision-Making: A Field Experiment in Odisha, India

Abstract

We study psychological impediments that make it difficult to change be- haviour. In particular, we evaluate the impact of a randomised psychological intervention designed to target locus of control{an individual's belief in their own ability to in influence their outcomes - on the adoption of climate resilient technologies. In the control farmers receive a standard agricultural education. Treatment farmers are assigned to one of three treatments where they receive agricultural training and either: a psychological information treatment providing tools to change belief about one's sense of control, a crop simulation app - al- lowing farmers to simulate their agricultural decisions and a treatment with both combined. Our sample consists of 1674 farmers from 252 villages in Odisha, India. We nd that at baseline, the majority do not believe they can inuence their agricultural outcomes. However, the interventions have little impact on agricultural behaviour, locus of control or aspirations. We then study explanations.