Vulnerability of Consumption Growth in Rural India
AbstractThe fragility of livelihoods and hence the vulnerability of consumption growth due to aggregate shocks in the Indian rural sector have been highlighted recently. However, as yet there exist no estimates of the vulnerability of consumption growth in rural India. This paper attempts to fill this lacuna by providing certainty equivalent growth of consumption in 14 major states of India over the period 1958-1997, corresponding to NSS Rounds 13th to 53rd. The extant debates around poverty-growth elasticities are premised on the assumption of a state of world without any risks and uncertainties. In the real world in which the poor actually live they are subject to risks - both general and idiosyncratic - which affect their welfare. Thus poverty should not be viewed in static terms but within a framework that allows for changing states of the world. This paper shows that certainty equivalent consumption growth in rural India has been much lower than average real per capita consumption growth - indeed, in some cases, it has been negative. This points to the poor performance of consumer-perceived average welfare in India's rural sector and should be a matter of urgent policy concern.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2006-04.
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/acde/asarc/
More information through EDIRC
India; Consumption Volatility; National Sample Survey; Certainty Equivalent Consumption;
Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D18 - Microeconomics - - Household Behavior - - - Consumer Protection
- D69 - Microeconomics - - Welfare Economics - - - Other
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-20 (All new papers)
- NEP-CWA-2006-05-20 (Central & Western Asia)
- NEP-DEV-2006-05-20 (Development)
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.:
- Hoddinott, John & Quisumbing, Agnes, 2003. "Methods for microeconometric risk and vulnerability assessments," Social Protection Discussion Papers 29138, The World Bank.
- Datt, Gaurav & Ravallion, Martin, 2002.
"Is India's economic growth leaving the poor behind?,"
Policy Research Working Paper Series
2846, The World Bank.
- Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer.
- R Gaiha & K Imai, 2006. "Vulnerability and poverty in rural India-estimates for rural south India," The School of Economics Discussion Paper Series 0602, Economics, The University of Manchester.
- Katsushi Imai & Raghav Gaiha, 2002.
"Vulnerability, Shocks and Persistence of Poverty - Estimates for Semi-Arid Rural South India,"
Economics Series Working Papers
128, University of Oxford, Department of Economics.
- Raghav Gaiha & Katsushi Imai, 2004. "Vulnerability, shocks and persistence of poverty: estimates for semi-arid rural South India," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 261-281.
- Imai, Katsushi & Raghav Gaiha, 2003. "Vulnerability, Shocks and Persistence of Poverty - Estimates for Semi-Arid Rural South India," Royal Economic Society Annual Conference 2003 111, Royal Economic Society.
- Ligon, Ethan & Laura Schechter, 2002.
Royal Economic Society Annual Conference 2002
128, Royal Economic Society.
- Auffret, Philippe, 2003. "High consumption volatility : the impact of natural disasters?," Policy Research Working Paper Series 2962, The World Bank.
- Datt, Gaurav & Ravallion, Martin, 1996.
"Macroeconomic crises and poverty monitoring,"
FCND discussion papers
20, International Food Policy Research Institute (IFPRI).
- Datt, Gaurav & Ravallion, Martin, 1996. "Macroeconomic crises and poverty monitoring : a case study for India," Policy Research Working Paper Series 1685, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.