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Household Consumption and Natural Disasters: The Case of Hurricane Mitch in Nicaragua AgEcon
van den Berg, Marrit; Burger, Kees.
This paper analyses coping strategies and consumption reactions of rural households in Nicaragua to hurricane Mitch, which caused massive losses in especially the agricultural sector in 1998. A switching-regression model confirms theoretical considerations which indicate that responses to transitory incomes depend on wealth. Asset-poor households do and asset-rich households do not adjust their consumption to transitory income changes.
Tipo: Conference Paper or Presentation Palavras-chave: Natural disasters; Assets; Consumption smoothing; Food Consumption/Nutrition/Food Safety; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/44380
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Inter-household Allocations within Extended Family: Evidence from the Indonesia Family Life Survey AgEcon
Witoelar, Firman.
This paper uses data from two waves of the Indonesia Family Life Survey (IFLS2-1997 and IFLS3-2000) to investigate whether households that belong to the same extended families pool their income to smooth their consumption. We exploit the fact that the survey also tracks and interviews split-off households during the follow-up surveys, enabling us to construct a panel of extended families. The findings suggest that in contradiction to the null hypothesis of extended-family income pooling, household own income still matters to household consumption even after controlling for extended family resources. The result stands after correcting for potential measurement error and endogeneity of income. More importantly, the findings also suggest that although the...
Tipo: Working or Discussion Paper Palavras-chave: Consumption smoothing; Risk-sharing; Extended families; Consumer/Household Economics; D13; J12; O12.
Ano: 2005 URL: http://purl.umn.edu/28472
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Migration and Land Rental as Risk Response in Rural China AgEcon
Ward, Patrick S.; Shively, Gerald E..
Households in developing countries take various actions to smooth income or consumption as a means of managing or responding to risk. One of the principal means of smoothing income is through the diversification of income sources, including non-farm employment and rural-urban migration. An important consumption smoothing strategy involves the accumulation and depletion of assets. We examine migration and land rental market participation as responses to risk in rural China. Using a longitudinal data set comprised of households in nine provinces in China from 1991 through 2006, we are able to test for the effect of various manifestations of underlying idiosyncratic and covariate income risk on household responses. We find that covariate risks increase...
Tipo: Conference Paper or Presentation Palavras-chave: China; Risk; Consumption smoothing; Income smoothing; International Development; Labor and Human Capital; Risk and Uncertainty; O15; R23; Q15.
Ano: 2011 URL: http://purl.umn.edu/103379
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Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso AgEcon
Kazianga, Harounan; Udry, Christopher R..
This paper explores the extent of consumption smoothing between 1981 and 1985 in rural Burkina Faso. In particular, we examine the extent to which livestock, grain storage and interhousehold transfers are used to smooth consumption against income risk. The survey coincided with a period of severe drought, so that the results provide direct evidence on the effectiveness of these various insurance mechanisms when they are the most needed. We find evidence of little consumption smoothing. In particular, there is almost no risk sharing, and households rely almost exclusively on self-insurance in the form of adjustments to grain stocks to smooth out consumption. The outcome, however is far from complete smoothing. Hence the main risk-coping strategies, which...
Tipo: Working or Discussion Paper Palavras-chave: Livestock; Consumption smoothing; Permanent income hypothesis; Precautionary saving; Risk sharing; Risk and Uncertainty; D91; O16.
Ano: 2004 URL: http://purl.umn.edu/28497
Registros recuperados: 4
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