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Vulnerability, Shocks and Persistence of Poverty - Estimates for Semi-Arid Rural South India

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Author Info
Katsushi Imai
Raghav Gaiha

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Abstract

This paper focuses on vulnerability of rural households to poverty when a negative crop shock occurs. Of particular concern is the possibilty of some sections experiencing long spells of poverty as a consequence of such shocks. The analysis is based on the ICRISAT panel survey of households in a semi-arid region in south India during 1975-84. Using alternative specifications that take into account direct effects of crop shocks as well as their indirect effects through asset adjustment, an assessment of vulnerability of different groups of households (e.g. classified on the basis of caste affiliation) is carried out. Whether transfers of land and non-land assets would reduce significantly their vulnerability is also examined. A reorientation of anti-poverty strategy is necessary to avoid welfare losses from negative crop shocks that are frequent and occasionally large.

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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 128.

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Date of creation: 2002
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Handle: RePEc:oxf:wpaper:128

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Keywords: shocks dynamics vulnerability transfers poverty

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Find related papers by JEL classification:
H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation

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.:

  1. Neil McCulloch & Bob Baulch, 2000. "Simulating the Impact of Policy upon Chronic and Transitory Poverty in Rural Pakistan," Econometrics 0004003, EconWPA. [Downloadable!]
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Alderman, Harold & Paxson, Christina H & DEC, 1992. "Do the poor insure? A synthesis of the literature on risk and consumption in developing countries," Policy Research Working Paper Series 1008, The World Bank. [Downloadable!]
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  4. Morduch, Jonathan, 1998. "Poverty, economic growth, and average exit time," Economics Letters, Elsevier, vol. 59(3), pages 385-390, June. [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. R Gaiha & K Imai, 2005. "A Review of the Employment Guarantee Scheme in India," The School of Economics Discussion Paper Series 0513, Economics, The University of Manchester. [Downloadable!]
  2. Pasquale Scaramozzino, 2006. "Measuring Vulnerability to Food Insecurity," Working Papers 06-12, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  3. Raghbendra Jha & Raghav Gaiha & Anurag Sharma, 2006. "Mean Consumption, Poverty and Inequality in Rural India in the Sixtieth Round of the National Sample Survey," ASARC Working Papers 2006-11, Australian National University, Australia South Asia Research Centre. [Downloadable!]
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This page was last updated on 2008-11-17.

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