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Consumption Smoothing in the Zone Lacustre, Mali

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  • Sarah Harrower
  • John Hoddinott

Abstract

This paper examines consumption smoothing in the Zone Lacustre, Mali, a poor region in one of the poorest countries in the world. Idiosyncratic shocks appear to have little impact on consumption. A stronger test of consumption smoothing shows that controlling for covariate shocks, changes in household income lead to modest changes in consumption. These results are robust to concerns regarding bias resulting from measurement error or endogeneity of changes in income. Although there is no one single response, in general non-poor households are more likely to enter into new income generating activities given these shocks while poor households are more likely to engage in gift exchange or to ration consumption. Copyright 2005, Oxford University Press.

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Bibliographic Info

Article provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.

Volume (Year): 14 (2005)
Issue (Month): 4 (December)
Pages: 489-519

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Handle: RePEc:oup:jafrec:v:14:y:2005:i:4:p:489-519

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Cited by:
  1. Renaud Bourlès & Bruno Ventelou & Maame Esi Woode, 2012. "Child Income as an Insurance Mechanism Consequences for the Health-Education Relationship," AMSE Working Papers 1205, Aix-Marseille School of Economics, Marseille, France.
  2. Skoufias, Emmanuel & Vinha, Katja & Conroy, Hector V., 2011. "The impacts of climate variability on welfare in rural Mexico," Policy Research Working Paper Series 5555, The World Bank.
  3. Sakurai, Takeshi & Savadogo, Kimseyinga, 2009. "Covariate Shocks and Rural Poverty in Burkina Faso," 2009 Conference, August 16-22, 2009, Beijing, China 51722, International Association of Agricultural Economists.
  4. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," Working Paper Series wp2010-44, World Institute for Development Economic Research (UNU-WIDER).
  5. Eleonora Nillesen & Philip Verwimp, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in rural Burundi," HiCN Working Papers 75, Households in Conflict Network.
  6. Christiaensen, Luc & Hoffmann, Vivian & Sarris, Alexander, 2007. "Gauging the welfare effects of shocks in rural Tanzania," Policy Research Working Paper Series 4406, The World Bank.
  7. Abla Safir, 2009. "Who leaves, who moves in? The impact of positive and negative income shocks on migration in Senegal," Working Papers halshs-00585955, HAL.
  8. Davies, Simon, 2007. "Remittances as insurance for idiosyncratic and covariate shocks in Malawi: The importance of distance and relationship," MPRA Paper 4463, University Library of Munich, Germany.
  9. Davies, Simon & Easaw, Joshy & Ghoshray, Atanu, 2009. "Mental accounting and remittances: A study of rural Malawian households," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 321-334, June.
  10. Stefan Dercon, 2007. "Fate and Fear: Risk and its Consequences in Africa," Economics Series Working Papers GPRG-WPS-074, University of Oxford, Department of Economics.
  11. World Bank, 2012. "The Welfare Effects of Extreme Weather Events : Insights from Three APEC Case Studies," World Bank Other Operational Studies 13039, The World Bank.
  12. Julie Litchfield & Thomas McGregor, 2008. "Poverty in Kagera, Tanzania: Characteristics, Causes and Constraints," PRUS Working Papers 42, Poverty Research Unit at Sussex, University of Sussex.

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