Do rural households smooth their consumption? Applying an asset-based approach to the case of Malawi
AbstractSmallholder farming households in most of the developing countries, live in environments that are characterized by substantial risk. They consequently develop a range of risk management strategies. However, analyzing household consumption smoothing behaviour requires the availability of both income and consumption data. Since household income data are usually unavailable in many developing countries, including Malawi, this paper develops an asset-based framework to analyze consumption smoothing behaviour at household and community levels using a two-period panel dataset on 259 rural households in Malawi. The results show that while consumption smoothing takes place at the household level, it is not perfect. Food consumption is protected more than non-food consumption. Risk sharing also takes place at the community level. The major policy implication is that social protection programmes should promote household asset accumulation to enable rural households manage livelihood risks better.
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 University Library of Munich, Germany in its series MPRA Paper with number 15398.
Date of creation: 05 Jan 2009
Date of revision:
Consumption smoothing; risk; rural Malawi;
Find related papers by JEL classification:
- B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-05-30 (Africa)
- NEP-AGR-2009-05-30 (Agricultural Economics)
- NEP-ALL-2009-05-30 (All new papers)
- NEP-DEV-2009-05-30 (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.:
- Morris, Saul Sutkover & Calogero, Carletto & Hoddinott, John & Christiaensen, Luc J. M., 1999. "Validity of rapid estimates of household wealth and income for health surveys in rural Africa," FCND discussion papers 72, International Food Policy Research Institute (IFPRI).
- Harrower, Sarah & Hoddinott, John, 2004.
"Consumption soothing and vulnerability in the Zone Lacustre, Mali,"
FCND discussion papers
175, International Food Policy Research Institute (IFPRI).
- Harrower, Sarah & Hoddinott, John, 2004. "Consumption soothing and vulnerability in the Zone Lacustre, Mali," FCND briefs 175, International Food Policy Research Institute (IFPRI).
- Grimard, Franque, 1997. "Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 53(2), pages 391-422, August.
- Marcel Fafchamps & Susan Lund, .
"Risk Sharing Networks in Rural Philippines,"
97014, Stanford University, Department of Economics.
- Holzmann, Robert & Jorgensen, Steen, 1999.
"Social protection as social risk management : conceptual underpinnings for the social protection sector strategy paper,"
Social Protection Discussion Papers
20119, The World Bank.
- Paul Mosley & Robert Holzmann & Steen Jorgensen, 1999. "Social protection as social risk management: conceptual underpinnings for the social protection sector strategy paper," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(7), pages 1005-1027.
- Townsend, Robert M, 1994.
"Risk and Insurance in Village India,"
Econometric Society, vol. 62(3), pages 539-91, May.
- Robert M. Townsend, . "Risk and Insurance in Village India," University of Chicago - Population Research Center 91-3a, Chicago - Population Research Center.
- Townsend, R.M., 1991. "Risk and Insurance in Village India," University of Chicago - Economics Research Center 91-3, Chicago - Economics Research Center.
- Delphine M. Irac & Camelia Minoiu, 2007. "Risk insurance in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 153-173, 03.
- Paxson, Christina H, 1993.
"Consumption and Income Seasonality in Thailand,"
Journal of Political Economy,
University of Chicago Press, vol. 101(1), pages 39-72, February.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.