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Wealth Accumulation and Activity Choice Evolution Among Amazonian Forest Peasant Households

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  • Yoshito Takasaki
  • BRADFORD L. BARHAM
  • Oliver T. Coomes

Abstract

This paper examines investment and livelihood decisions among forest peasant households in the Amazonian floodplain. A dynamic household model of multiple asset accumulation and activity choice under risk and credit constraints is developed by incorporating natural resource use and human capital evolution. Asset portfolios and sectoral incomes are estimated and then simulated to investigate the endowment and lifecycle dependency as well as the convergence/divergence of asset accumulation and corresponding activity choices. Physical asset endowment (especially land) and different human capital evolutions across activities help to explain forest peasants' livelihood choices, distinctive asset portfolios, and divergent income outcomes over the lifecycle.

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Bibliographic Info

Paper provided by Wisconsin-Madison Agricultural and Applied Economics Department in its series Wisconsin-Madison Agricultural and Applied Economics Staff Papers with number 434.

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Length: 37 pages
Date of creation: Sep 2000
Date of revision:
Handle: RePEc:wop:wisaes:434

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  1. Barrett, Christopher B., 1999. "Stochastic food prices and slash-and-burn agriculture," Environment and Development Economics, Cambridge University Press, vol. 4(02), pages 161-176, May.
  2. Zeldes, Stephen P, 1989. "Consumption and Liquidity Constraints: An Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 97(2), pages 305-46, April.
  3. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-50, July.
  4. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S29-59, Supplemen.
  5. Stefan Dercon, 1996. "Wealth, risk and activity choices: cattle in Western Tanzania," Economics Series Working Papers WPS/1996-08, University of Oxford, Department of Economics.
  6. Baland, Jean-Marie & Platteau, Jean-Philippe, 2000. "Halting Degradation of Natural Resources: Is There a Role for Rural Communities?," OUP Catalogue, Oxford University Press, number 9780198290612, September.
  7. Barham, Bradford & Carter, Michael R. & Sigelko, Wayne, 1995. "Agro-export production and peasant land access: Examining the dynamic between adoption and accumulation," Journal of Development Economics, Elsevier, vol. 46(1), pages 85-107, February.
  8. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
  9. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2000. "Rapid Rural Appraisal in Humid Tropical Forests: An Asset Possession-Based Approach and Validation Methods for Wealth Assessment Among Forest Peasant Households," World Development, Elsevier, vol. 28(11), pages 1961-1977, November.
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Cited by:
  1. López-Feldman, Alejandro & Edward Taylor, J., 2009. "Labor allocation to non-timber extraction in a Mexican rainforest community," Journal of Forest Economics, Elsevier, vol. 15(3), pages 205-221, August.
  2. Albuquerque Sant'Anna, André, 2012. "Land inequality and deforestation in the Brazilian Amazon," MPRA Paper 43793, University Library of Munich, Germany, revised Dec 2012.
  3. André Albuquerque Sant'Anna, 2014. "Land Inequality And Deforestation In Thebrazilian Amazon," Anais do XL Encontro Nacional de Economia [Proceedings of the 40th Brazilian Economics Meeting] 198, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].

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