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Vulnerability to Weather Disasters: the Choice of Coping Strategies in Rural Uganda Ecology and Society
Helgeson, Jennifer F; London School of Economics and Political Science, Department of Geography and Environment; The Grantham Research Institute on Climate Change and the Environment; j.helgeson@lse.ac.uk; Dietz, Simon; London School of Economics and Political Science, Department of Geography and Environment; The Grantham Research Institute on Climate Change and the Environment; s.dietz@lse.ac.uk; Hochrainer-Stigler, Stefan; IIASA - International Institute for Applied Systems Analysis; hochrain@iiasa.ac.at.
When a natural disaster hits, the affected households try to cope with its impacts. A variety of coping strategies, from reducing current consumption to disposing of productive assets, may be employed. The latter strategies are especially worrisome because they may reduce the capacity of the household to generate income in the future, possibly leading to chronic poverty. We used the results of a household survey in rural Uganda to ask, first, what coping strategies would tend to be employed in the event of a weather disaster, second, given that multiple strategies can be chosen, in what combinations would they tend to be employed, and, third, given that asset-liquidation strategies can be particularly harmful for the future income prospects of households,...
Tipo: Peer-Reviewed Insight Palavras-chave: Coping strategies; Covariate risk; Education; Extreme weather; Poverty trap; Small-scale farming; Uganda; Vulnerability.
Ano: 2013
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STOCHASTIC WEALTH DYNAMICS AND RISK MANAGEMENT AMONG A POOR POPULATION AgEcon
Lybbert, Travis J.; Barrett, Christopher B.; Desta, Solomon; Coppock, D. Layne.
The literature on economic growth and development has focused considerable attention on questions of risk management and the possibility of multiple equilibria associated with poverty traps. We use herd history data collected among pastoralists in southern Ethiopia to study stochastic wealth dynamics among a very poor population. These data yield several novel findings. Although covariate rainfall shocks plainly matter, household-specific factors, including own herd size, account for most observed variability in wealth dynamics. Despite longstanding conventional wisdom about common property grazing lands, we find no statistical support for the tragedy of the commons hypothesis. It appears that past studies may have conflated costly self-insurance with...
Tipo: Working or Discussion Paper Palavras-chave: Common property; Covariate risk; Ethiopia; Idiosyncratic risk; Poverty traps; Social insurance; Risk and Uncertainty; O1; Q12.
Ano: 2002 URL: http://purl.umn.edu/14736
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Weather Risk and the Off-­Farm Labor Supply of Agricultural Households in India AgEcon
Ito, Takahiro; Kurosaki, Takashi.
As one of the measures to smooth income, this paper focuses on the diversification of labor allocation across activities. A key feature of this paper is that it pays particular attention to differences in the covariance between weather risk and agricultural wages and between weather risk and nonagricultural wages. We estimate a multivariate tobit model of labor allocation using household data from rural areas of Bihar and Uttar Pradesh, India. The regression results show that the share of the off­farm labor supply increases with the weather risk, and the increase is much larger in the case of nonagricultural wage work than in the case of agricultural wage work. Simulation results based on the regression estimates show that the sectoral difference is...
Tipo: Conference Paper or Presentation Palavras-chave: Covariate risk; Nonfarm employment; Selfemployment; Food security; India; Labor and Human Capital; Q12; O15; J22.
Ano: 2006 URL: http://purl.umn.edu/25774
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Risk Preferences and Demand for Insurance in Peru: A Field Experiment AgEcon
Galarza, Francisco B.; Carter, Michael R..
This paper reports the results of behavioral economic experiments conducted in Peru to examine the relationship amongst risk preferences, loan take-up, and insurance purchase decisions. This area-based yield insurance can help reduce people's vulnerability to large scale covariate shocks, and can also lower the loan default probability under extreme negative covariate shocks. In a context of collateralized formal credit markets, we provide suggestive evidence that insurance may help reduce the fear of losing collateral that prevents potential borrowers from taking loans. Framing these experiments to recreate a real life situation, we started with a Baseline Game where subjects had to choose between a fallback production project and an uninsured loan. We...
Tipo: Conference Paper or Presentation Palavras-chave: Area-yield insurance; Credit; Covariate risk; Idiosyncratic risk; Risk aversion; Experimental economics; Peru; Risk and Uncertainty; C93; D81.
Ano: 2010 URL: http://purl.umn.edu/61871
Registros recuperados: 4
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