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Perceptions of Risk within Pastoralist Households in Northern Kenya and Southern Ethiopia

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Author Info

  • Doss, Cheryl R.
  • McPeak, John G.
  • Barrett, Christopher B.

Abstract

Perceptions of risk may vary within households as well as across households and communities. In this paper, we take advantage of panel survey data collected quarterly over a period of 2 ½ years to see how perceptions of risk vary across individuals over time. The surveyed households are in pastoralist communities in Northern Kenya and Southern Ethiopia and the survey period coincides with a severe drought in this region and the beginning of the recovery. We identify the structural heterogeneity of the perceptions of risk of these individuals. Because of the nature of panel data, we can also test how the perceptions of risk are affected by shocks in previous periods. In particular, we ask how an individual's risk perceptions change when shocks happen to him or herself, to other members of his or her, family, or to members of his or her community. This allows us to ask how expectations adapt based on the things that are happening to others and allows us to look at issues of social networks and learning.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19504.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19504

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Keywords: Risk and Uncertainty;

References

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  1. Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
  2. C. Barrett & K. Smith & P. Box, 2001. "Not Necessarily In The Same Boat: Heterogeneous Risk Assessment Among East African Pastoralists," Journal of Development Studies, Taylor & Francis Journals, vol. 37(5), pages 1-30.
  3. James Andreoni & Eleanor Brown & Isaac C. Rischall, . "Charitable Giving by Married Couples: Who Decides and Why Does it Matter?," Canadian International Labour Network Working Papers 32, McMaster University.
  4. Kusago, Takayoshi & Barham, Bradford L., 2001. "Preference Heterogeneity, Power, and Intrahousehold Decision-Making in Rural Malaysia," World Development, Elsevier, vol. 29(7), pages 1237-1256, July.
  5. Jere Behrman & Hans-Peter Kohler & Susan C. Watkins, 2003. "Social Networks, HIV/AIDS and Risk Perceptions," PIER Working Paper Archive 03-007, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  6. Renate Schubert, 1999. "Financial Decision-Making: Are Women Really More Risk-Averse?," American Economic Review, American Economic Association, vol. 89(2), pages 381-385, May.
  7. Lybbert, Travis J. & Barrett, Christopher B. & McPeak, John G. & Luseno, Winnie K., 2003. "Bayesian Herders: Asymmetric Updating Of Rainfall Beliefs In Response To External Forecasts," Working Papers 14762, Cornell University, Department of Applied Economics and Management.
  8. Smith, Kevin & Barrett, Christopher B. & Box, Paul W., 2000. "Participatory Risk Mapping for Targeting Research and Assistance: With an Example from East African Pastoralists," World Development, Elsevier, vol. 28(11), pages 1945-1959, November.
  9. F. Dodoo, 1998. "Men matter: Additive and interactive gendered preferences and reproductive behavior in kenya," Demography, Springer, vol. 35(2), pages 229-242, May.
  10. Joel L. Schrag, 1999. "First Impressions Matter: A Model Of Confirmatory Bias," The Quarterly Journal of Economics, MIT Press, vol. 114(1), pages 37-82, February.
  11. FFF1Christoph NNN1Bühler & FFF2Hans-Peter NNN2Kohler, 2003. "Talking about AIDS," Demographic Research Special Collections, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 1(13), pages 397-438, September.
  12. Catherine C. Eckel & Philip J. Grossman, 2008. "Forecasting Risk Attitudes: An Experimental Study Using Actual and Forecast Gamble Choices," Development Research Unit Working Paper Series archive-01, Monash University, Department of Economics.
  13. Jianakoplos, Nancy Ammon & Bernasek, Alexandra, 1998. "Are Women More Risk Averse?," Economic Inquiry, Western Economic Association International, vol. 36(4), pages 620-30, October.
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