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Assets, Activity Choices, and Civil War: Evidence from Burundi

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  • Bundervoet, Tom

Abstract

Summary This article examines the relation between risky assets and activity choices in rural Burundi. The literature says that when assets are risky, their effectiveness as a buffer is eroded. A corollary of this is that even wealthier households will engage in income-skewing activities. Exploiting the differential degree in asset risk related to the spatial intensity of the civil war, we find that higher asset holdings do not induce households in the war regions to reduce investment in safe low-return activities--as opposed to households in other regions. This potentially explains (in part) the massive increase in poverty in the war regions.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 7 (July)
Pages: 955-965

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:7:p:955-965

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: assets risk conflict activity choices Africa Burundi;

References

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  10. Tom Bundervoet, 2006. "Estimating Poverty in Burundi," HiCN Working Papers 20, Households in Conflict Network.
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  14. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
  15. Dercon, Stefan, 1996. "Risk, Crop Choice, and Savings: Evidence from Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 485-513, April.
  16. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
  17. Reardon, Thomas, 1997. "Using evidence of household income diversification to inform study of the rural nonfarm labor market in Africa," World Development, Elsevier, vol. 25(5), pages 735-747, May.
  18. Yaron, J., 1992. "Successful Rural Finance Institutions," World Bank - Discussion Papers 150, World Bank.
  19. Woldenhanna, T. & Oskam, A., 2001. "Income diversification and entry barriers: evidence from the Tigray region of northern Ethiopia," Food Policy, Elsevier, vol. 26(4), pages 351-365, August.
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Citations

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Cited by:
  1. Jean-Francois Maystadt & Olivier Ecker & Athur Mabiso, 2013. "Extreme Weather and Civil War in Somalia: Does Drought Fuel Conflict through Livestock Price Shocks?," LICOS Discussion Papers 32613, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Carlos Bozzoli & Tilman Brück & Tony Muhumuza, 2011. "Activity Choices of Internally Displaced Persons and Returnees: Quantitative Survey Evidence from Post-War Northern Uganda," Discussion Papers of DIW Berlin 1134, DIW Berlin, German Institute for Economic Research.
  3. Bove, Vincenzo & Gavrilova, Evelina, 2014. "Income and Livelihoods in the War in Afghanistan," World Development, Elsevier, vol. 60(C), pages 113-131.
  4. Philip Verwimp & Juan Carlos Muñoz-Mora, 2013. "Returning Home after Civil War: Food security, nutrition and poverty among Burundian households," HiCN Working Papers 123, Households in Conflict Network.

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