How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?
AbstractThe main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational choice. Estimates suggest that the entry (sunk) cost associated with moving out of subsistence can be quite large somewhere between 124 and 153 percent of a subsistence farmer's annual production. Our results make it possible to identify farm characteristics likely to generate large gains if moved out of subsistence, yielding useful information for the targeting of trade-adjustment assistance programs.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5392.
Date of creation: Dec 2005
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Other versions of this item:
- Olivier Cadot & Laure Dutoit & Marcelo Olarreaga, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 05.09, Université de Lausanne, Faculté des HEC, DEEP.
- F10 - International Economics - - Trade - - - General
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
- NEP-AGR-2006-01-24 (Agricultural Economics)
- NEP-ALL-2006-01-24 (All new papers)
- NEP-DEV-2006-01-24 (Development)
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