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Assessing the Vulnerability of Agricultural Households to Macroeconomic Shocks: Evidence from Mexico

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  • Rubio, Gloria M.
  • Soloaga, Isidro

Abstract

This paper uses cross-sectional data from Mexico before and after the 1994 peso crisis to analyze rural household vulnerability to macroeconomic shocks. The study suggests that agricultural households are less vulnerable than non-agricultural households. The impacts vary depending on type of production and specialization level. Among agricultural households, those with a higher proportion of corn and bean production for self-consumption fared better than households which engaged in stronger market participation. Although the decline in their monetary income and consumption was more or less similar to that of the more market-oriented agricultural households, they were better able to shield their total income and consumption as well as their food expenditures.

Suggested Citation

  • Rubio, Gloria M. & Soloaga, Isidro, 2004. "Assessing the Vulnerability of Agricultural Households to Macroeconomic Shocks: Evidence from Mexico," eJADE: electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations (FAO), Agricultural and Development Economics Division (ESA), vol. 1(01), pages 1-18.
    • Handle: RePEc:ags:ejade1:12007
    DOI: 10.22004/ag.econ.12007
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    2. Pipit Pitriyan & Ahmad Komarulzaman, 2010. "The Effect of Income Shocks and Credit Constraint on Child Labor Participation and Poverty: The Case of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201002, Department of Economics, Padjadjaran University, revised Jun 2010.
    3. Glukhikh, Rimma & Lerman, Zvi & Schwartz, Moshe, 2005. "Vulnerability And Risk Management Among Turkmen Leaseholders," Discussion Papers 7144, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    4. Alejandro de la Fuente & Eduardo Ortiz-Juárez & Carlos Rodríguez-Castelán, 2018. "Living on the edge: vulnerability to poverty and public transfers in Mexico," Oxford Development Studies, Taylor & Francis Journals, vol. 46(1), pages 10-27, January.

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    Keywords

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    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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