The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique
AbstractThis 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 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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Bibliographic InfoPaper provided by Households in Conflict Network in its series HiCN Working Papers with number 04.
Length: 31 pages
Date of creation: May 2004
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Web page: http://www.hicn.org
poverty; farm households; activity choices; rural development; war; reconstruction;
Other versions of this item:
- Tilman Brück, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," Discussion Papers of DIW Berlin 413, DIW Berlin, German Institute for Economic Research.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
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