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Evaluating seasonal food storage and credit programs in east Indonesia

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  • Basu, Karna
  • Wong, Maisy

Abstract

Predictable annual lean seasons occur in many rural areas, including West Timor in Indonesia. Imperfections in savings and credit markets make it difficult for staple farmers to convert harvest season output into lean season consumption. We conduct a randomized evaluation of a seasonal food storage program and a food credit program. By providing improved ways to transfer assets across seasons, each program functions as a subsidy on lean season consumption. We find that neither program had effects on staple food consumption. The storage program increased non-food consumption. The credit program increased reported income and reduced seasonal gaps in consumption. Our results are consistent with positive income effects through the expansion of budget sets, but suggest that the average household could be close to staple food satiation.

Suggested Citation

  • Basu, Karna & Wong, Maisy, 2015. "Evaluating seasonal food storage and credit programs in east Indonesia," Journal of Development Economics, Elsevier, vol. 115(C), pages 200-216.
    • Handle: RePEc:eee:deveco:v:115:y:2015:i:c:p:200-216
    DOI: 10.1016/j.jdeveco.2015.02.001
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