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How Costly is it for Poor Farmers to Lift Themselves out of Subsistence? Author info | Abstract | Publisher info | Download info | Related research | Statistics Olivier Cadot
Laure Dutoit
Marcelo Olarreaga
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The 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 generatee large gains if moved out of subsistence, yielding useful information for the targeting of trade-adjustment assistance programs.
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Paper provided by Université de Lausanne, Faculté des HEC, DEEP in its series Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) with number
05.09.
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Length: 44 pages
Date of creation: Nov 2005Date of revision:
Handle: RePEc:lau:crdeep:05.09Contact details of provider: Postal: Université de Lausanne, Faculté des HEC, DEEP, Internef, CH-1015 Lausanne Phone: ++41 21 692.33.64 Fax: ++41 21 692.33.65 Web page: http://www.hec.unil.ch/deep/publications-english/e-cahiers.htm
For technical questions regarding this item, or to correct its listing, contact: (Claudine Delapierre Saudan).
Keywords: threshold regression ; switching regression ; unknown sample separation ; Madagascar ; subsistence ; entry costs ; Other versions of this item:
Find related papers by JEL classification: 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
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Field, Alfred J. & Field, Erica, 2007.
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