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Consumption vulnerability to risk in rural Pakistan

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Author Info
Takashi Kurosaki
Abstract

As one of the dimensions of vulnerability, this paper empirically investigates the inability of rural dwellers to cope with negative income shocks. A variable coefficient regression model is applied to a two-period household panel dataset collected in the North-West Frontier Province, Pakistan, an area with high incidence of income poverty and low human development. The empirical model allows for a different ability to smooth consumption, approximated by a linear function of households’ attributes, and controls for the endogeneity of observed changes in income, using qualitative information on subjective risk assessment. Estimation results show that the ability to cope with negative income shocks is lower for households that are aged, landless and do not receive remittances regularly.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 1 (January)
Pages: 70-89
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Handle: RePEc:taf:jdevst:v:42:y:2006:i:1:p:70-89

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  1. Takashi Kurosaki, 2006. "The measurement of transient poverty: Theory and application to Pakistan," Journal of Economic Inequality, Springer, vol. 4(3), pages 325-345, December. [Downloadable!] (restricted)
  2. Stark, Oded, 2009. "Reasons for Remitting," Discussion Papers 52800, University of Bonn, Center for Development Research (ZEF). [Downloadable!]
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This page was last updated on 2010-1-1.

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