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The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique

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Author Info
Tilman Brück

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Abstract

This paper analyses the effects of activity choices on farm household income and consumption in a war-affected developing country. The study uses household survey data from Mozambique and controls for the endogeneity of activity choices with instrumental variables. War-time activity choices (such as subsistence farming) are shown to enhance welfare in the post-war period. Market and social exchange induce only limited welfare gains. Cotton adoption reduces household welfare, which contradicts previous studies not controlling for endogenous activity choices. The study thus demonstrates how standard predictions of economics may become invalid in post-war economies. Furthermore, the paper identifies pro-poor reconstruction policies.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 413.

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Length: 32 p.
Date of creation: 2004
Date of revision:
Handle: RePEc:diw:diwwpp:dp413

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Related research
Keywords: Poverty Farm households Activity choices Rural development War Reconstruction

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Find related papers by JEL classification:
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August. [Downloadable!] (restricted)
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    Other versions:
  6. Appleton, S., 1995. "'The Rich Are Just Like Us Only Richer' Poverty Functions or Consumption Functions?," Working Papers Series 95-4, Centre for the Study of African Economies, University of Oxford.
  7. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank. [Downloadable!]
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  8. Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August. [Downloadable!] (restricted)
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  11. Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," World Bank Economic Review, Oxford University Press, vol. 6(2), pages 233-54, May.
  12. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
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  13. Tschirley, David L. & Weber, Michael T., 1994. "Food security strategies under extremely adverse conditions: The determinants of household income and consumption in rural Mozambique," World Development, Elsevier, vol. 22(2), pages 159-173, February. [Downloadable!] (restricted)
  14. Kennedy, Eileen T. & Cogill, Bruce, 1987. "Income and nutritional effects of the commercialization of agriculture in southwestern Kenya:," Research reports 63, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  16. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network. [Downloadable!]
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