IDEAS home Printed from https://ideas.repec.org/p/fpr/fcnddp/175.html
   My bibliography  Save this paper

Consumption soothing and vulnerability in the Zone Lacustre, Mali

Author

Listed:
  • Harrower, Sarah
  • Hoddinott, John

Abstract

"This paper explores risk sharing in the Zone Lacustre, Mali, as viewed through the lens of consumption smoothing. We find that idiosyncratic shocks appear to have little impact on consumption, and that households respond to these shocks in a variety of ways. In general, nonpoor households are more likely to enter into new income-generating activities while poor households are more likely to engage in credit or gift exchange or to ration consumption. When we construct a stronger test for consumption smoothing, we find that changes in household income lead to modest changes in consumption. Covariant shocks, as measured by village/round dummies, always lead to changes in consumption. These results are robust to concerns regarding bias resulting from measurement error or endogeneity of changes in income. Lastly, we find that households with access to improved water control infrastructure are less vulnerable than those that rely on rainfall or the flooding of the Niger River." Authors' Abstract

Suggested Citation

  • Harrower, Sarah & Hoddinott, John, 2004. "Consumption soothing and vulnerability in the Zone Lacustre, Mali," FCND discussion papers 175, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:175
    as

    Download full text from publisher

    File URL: https://www.ifpri.org/cdmref/p15738coll2/id/60064/filename/60065.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Haddad, Lawrence James & Adato, Michelle, 2001. "How effectively do public works programs transfer benefits to the poor?," FCND discussion papers 108, International Food Policy Research Institute (IFPRI).
    2. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    3. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," The World Bank Research Observer, World Bank, vol. 14(2), pages 187-207, August.
    4. Robert M. Townsend, 1995. "Consumption Insurance: An Evaluation of Risk-Bearing Systems in Low-Income Economies," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 83-102, Summer.
    5. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    6. Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
    7. L. Christiaensen & J. Hoddinott & G. Bergeron, 2001. "Comparing village characteristics derived from rapid appraisals and household surveys: A tale from northern Mali," Journal of Development Studies, Taylor & Francis Journals, vol. 37(3), pages 1-20.
    8. Fafchamps, Marcel & Quisumbing, Agnes R., 1999. "Social roles, human capital, and the intrahousehold division of labor," FCND discussion papers 73, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. van de Walle, Dominique, 2011. "Lasting welfare effects of widowhood in a poor country," Policy Research Working Paper Series 5734, The World Bank.
    2. Paul Gertler & David I. Levine & Enrico Moretti, 2009. "Do microfinance programs help families insure consumption against illness?," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 257-273, March.
    3. Makoka, Donald, 2009. "Do rural households smooth their consumption? Applying an asset-based approach to the case of Malawi," MPRA Paper 15398, University Library of Munich, Germany.
    4. Makoka, Donald, 2008. "The impact of drought on household vulnerability: The case of rural Malawi," MPRA Paper 15399, University Library of Munich, Germany.
    5. Skoufias, Emmanuel & Quisumbing, Agnes R., 2004. "Consumption insurance and vulnerability to poverty : a synthesis of the evidence from Bangladesh, Ethiopia, Mali, Mexico and Russia," Social Protection Discussion Papers and Notes 29141, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    2. Ersado, Lire, 2003. "Income diversification in Zimbabwe," FCND discussion papers 152, International Food Policy Research Institute (IFPRI).
    3. Quisumbing, Agnes R., 2003. "Food Aid and Child Nutrition in Rural Ethiopia," World Development, Elsevier, vol. 31(7), pages 1309-1324, July.
    4. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    5. Gilligan, Daniel O. & Hoddinott, John, 2007. "AJAE Appendix: Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security and Assets in Rural Ethiopia," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 89(2), pages 1-8, May.
    6. Stefan Dercon (QEH), "undated". "Vulnerability: a micro perspective," QEH Working Papers qehwps149, Queen Elizabeth House, University of Oxford.
    7. Giuseppe Croce & Emanuela Ghignoni, 2011. "Overeducation and spatial flexibility in Italian local labour markets," Working Papers in Public Economics 145, University of Rome La Sapienza, Department of Economics and Law.
    8. Hany Eldemerdash & Hugh Metcalf & Sara Maioli, 2014. "Twin deficits: new evidence from a developing (oil vs. non-oil) countries’ perspective," Empirical Economics, Springer, vol. 47(3), pages 825-851, November.
    9. Cawley, John & Markowitz, Sara & Tauras, John, 2004. "Lighting up and slimming down: the effects of body weight and cigarette prices on adolescent smoking initiation," Journal of Health Economics, Elsevier, vol. 23(2), pages 293-311, March.
    10. Isaac B. Oluwatayo, 2004. "Income Risk and Welfare Status of Rural Households in Nigeria: Ekiti State as a Test Case," WIDER Working Paper Series RP2004-61, World Institute for Development Economic Research (UNU-WIDER).
    11. Fafchamps, Marcel & Quisumbing, Agnes, 2005. "Assets at marriage in rural Ethiopia," Journal of Development Economics, Elsevier, vol. 77(1), pages 1-25, June.
    12. Arndt, Channing & Simler, Kenneth R., 2005. "Estimating utility-consistent poverty lines," FCND briefs 189, International Food Policy Research Institute (IFPRI).
    13. Oded Palmon & Ben J. Sopranzetti, 2017. "On the relationship between the number of a broker’s real estate listings and transaction outcomes," Review of Quantitative Finance and Accounting, Springer, vol. 49(1), pages 65-89, July.
    14. Simler, Kenneth R., 2006. "Nutrition mapping in Tanzania: an exploratory analysis," FCND discussion papers 204, International Food Policy Research Institute (IFPRI).
    15. O'Brien, Raymond & Patacchini, Eleonora, 2003. "Testing the exogeneity assumption in panel data models with "non classical" disturbances," Discussion Paper Series In Economics And Econometrics 0302, Economics Division, School of Social Sciences, University of Southampton.
    16. Arun, Thankom Gopinath & Bendig, Mirko, 2010. "Risk Management among the Poor: The Case of Microfinancial Services," IZA Discussion Papers 5174, Institute of Labor Economics (IZA).
    17. Andre Jungmittag & Paul Welfens, 2009. "Liberalization of EU telecommunications and trade: theory, gravity equation analysis and policy implications," International Economics and Economic Policy, Springer, vol. 6(1), pages 23-39, June.
    18. Doko Tchatoka, Firmin & Dufour, Jean-Marie, 2020. "Exogeneity tests, incomplete models, weak identification and non-Gaussian distributions: Invariance and finite-sample distributional theory," Journal of Econometrics, Elsevier, vol. 218(2), pages 390-418.
    19. Robert Mulligan, 1996. "Export-import endogeneity in the context of the Thirlwall- Hussain model: an application of the Durbin-Wu-Hausman test incorporating a Monte Carlo experiment," Applied Economics Letters, Taylor & Francis Journals, vol. 3(4), pages 275-279.
    20. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.

    More about this item

    Keywords

    Vulnerability ; Consumption shocks ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fpr:fcnddp:175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ifprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.