Abstract
The diffusion of new technology is an important driver of agricultural development, especially in the developing world. In this research, we follow the persistence of major historical events, employing a difference‐in‐differences method to carefully examine the long‐term effect of China’s 1959–1961 famine on farm households’ current decisions to adopt technology. Further, we combine a mediating regression procedure with a bootstrap method to explore the mechanism of impact in this relationship. Overall, this study provides strong empirical evidence that the Great Famine attenuated technology adoption; moreover, a 1% increase in exposure to famine in childhood and adolescence resulted in a 0.137% decrease in the probability of technology adoption when controlling for village dummies. An analysis of mediating effects reveals that risk preferences account for the channel of famine persistence.
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