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Abstract
This paper deals with rural households’ decision regarding tree planting on farmland in
developing countries. This has been the topic of numerous descriptive socio-economic
studies. In many cases the findings and claims of these studies are ambiguous, although there
is a general agreement about the importance of imperfect markets. In addition, no studies that
we know of have formalised the tree planting decision in a prescriptive format. In this paper
we develop and evaluate a predictive theoretical rational-behaviour model to explore the tree
planting decision that encompasses household factor endowments and market characteristics.
We elaborate upon the model characteristics and discuss the strengths and weaknesses of the
model. In addition, we assess the data needs for the model and the data availability in a
Tanzanian context.