Household coping in war- and peacetime: Cattle sales in Rwanda, 1991-2001
The economic literature has given due attention to household coping strategies in peacetime. In contrast, little is known about such strategies in wartime. This paper studies the use of cattle as a buffer stock by Rwandan households during 1991-2001, a period characterized by civil war and genocide. It is found that the probability of selling cattle increases upon the occurrence of both peacetime and wartime covariant adverse income shocks. The peacetime cattle sales are largely explained by shifts in the household asset portfolio. In contrast, in 1994, the year of the genocide, almost half of the cattle sales were motivated by the need to buy food. However, we argue that the effectiveness of this coping strategy was severely reduced due to the wartime conditions. First, during the year of ethnic violence, cattle prices plummeted to less than half of their pre-genocide value. Second, we find that households most targeted in the violence did not sell cattle. We discuss several explanations for this latter finding.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Stephen Zeldes, .
"Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence,"
Rodney L. White Center for Financial Research Working Papers
20-86, Wharton School Rodney L. White Center for Financial Research.
- Zeldes, Stephen P, 1989. "Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence," The Quarterly Journal of Economics, MIT Press, vol. 104(2), pages 275-98, May.
- Asfaw, Abay & von Braun, Joachim, 2004. "Is Consumption Insured against Illness? Evidence on Vulnerability of Households to Health Shocks in Rural Ethiopia," Economic Development and Cultural Change, University of Chicago Press, vol. 53(1), pages 115-29, October.
- Fafchamps, Marcel & Gavian, Sarah, 1997. "The Determinants of Livestock Prices in Niger," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 6(2), pages 255-95, July.
- Patricia Justino & Philip Verwimp, 2006.
"Poverty Dynamics, Violent Conflict and Convergence in Rwanda,"
HiCN Working Papers
16, Households in Conflict Network.
- Patricia Justino & Philip Verwimp, 2013. "Poverty Dynamics, Violent Conflict, and Convergence in R wanda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59(1), pages 66-90, 03.
- Patricia Justino & Philip Verwimp, 2008. "Poverty Dynamics, Violent Conflict and Convergence in Rwanda," Research Working Papers 4, MICROCON - A Micro Level Analysis of Violent Conflict.
- Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," World Bank Economic Review, World Bank Group, vol. 6(2), pages 233-54, May.
- Campbell, John Y, 1987.
"Does Saving Anticipate Declining Labor Income? An Alternative Test of the Permanent Income Hypothesis,"
Econometric Society, vol. 55(6), pages 1249-73, November.
- John Y. Campbell, 1986. "Does Saving Anticipate Declining Labor Income? An Alternative Test of the Permanent Income Hypothesis," NBER Working Papers 1805, National Bureau of Economic Research, Inc.
- Lim, Y. & Townsend, R.M., 1997.
"General Equilibrium Models of Financial Systems: Theory and Measurement in Village Economies,"
9716, Centro de Estudios Monetarios Y Financieros-.
- Youngjae Lim & Robert Townsend, 1998. "General Equilibrium Models of Financial Systems: Theory and Measurement in Village Economies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(1), pages 59-118, January.
- Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, December.
- Marcel Fafchamps & Chris Udry & Katherine Czukas, .
"Drought and Saving in West Africa: Are Livestock a Buffer Stock?,"
97013, Stanford University, Department of Economics.
- Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
- Mpyisi, Edson & Weber, Michael T. & Shingiro, Emmanuel & Loveridge, Scott, 2003. "Changes in Allocation of Land Holdings, Production and Farm Size in the Rwandan Smallholder Sector Over the Period 1984/1990 to 2002," Food Security Collaborative Policy Briefs 55356, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Andre, Catherine & Platteau, Jean-Philippe, 1998. "Land relations under unbearable stress: Rwanda caught in the Malthusian trap," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 1-47, January.
- Dabalen, Andrew & Paternostro, Stefano & Pierre, Gaelle, 2004. "The returns to participation in the non-farm sector in rural Rwanda," Policy Research Working Paper Series 3462, The World Bank.
- McKay, Andrew & Loveridge, Scott, 2005. "Exploring The Paradox Of Rwandan Agricultural Household Income And Nutritional Outcomes In 1990 And 2000," Staff Papers 11582, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Verwimp, Philip, 2005. "An economic profile of peasant perpetrators of genocide: Micro-level evidence from Rwanda," Journal of Development Economics, Elsevier, vol. 77(2), pages 297-323, August.
- Angus Deaton, 1989.
"Saving and Liquidity Constraints,"
NBER Working Papers
3196, National Bureau of Economic Research, Inc.
- Barrett, Christopher B. & Chabari, Francis & Bailey, DeeVon & Coppock, D. Layne & Little, Peter D., 2001.
"Livestock Pricing In The Northern Kenyan Rangelands,"
2001 Annual meeting, August 5-8, Chicago, IL
20460, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Christopher B. Barrett & Francis Chabari & DeeVon Bailey & Peter D. Little & D. Layne Coppock, 2003. "Livestock Pricing in the Northern Kenyan Rangelands," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(2), pages 127-155, June.
- J. A. Hausman & W. E. Taylor, 1980.
"Panel Data and Unobservable Individual Effects,"
255, Massachusetts Institute of Technology (MIT), Department of Economics.
- Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May.
- Hausman, Jerry A & Taylor, William E, 1981. "Panel Data and Unobservable Individual Effects," Econometrica, Econometric Society, vol. 49(6), pages 1377-98, November.
- Rosenzweig, Mark R. & Wolpin, Kenneth I., 1989.
"Credit Market Constraints, Consumption Smoothing and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India,"
7487, University of Minnesota, Economic Development Center.
- Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India," Journal of Political Economy, University of Chicago Press, vol. 101(2), pages 223-44, April.
- Marijke Verpoorten & Lode Berlage, 2007. "Economic Mobility in Rural Rwanda: A Study of the Effects of War and Genocide at the Household Level," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(3), pages 349-392, June.
- Kazianga, Harounan & Udry, Christopher, 2006. "Consumption smoothing? Livestock, insurance and drought in rural Burkina Faso," Journal of Development Economics, Elsevier, vol. 79(2), pages 413-446, April.
- Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, December.
- Rosenzweig, Mark R., 1986.
"Risk, Implicit Contracts and the Family in Rural Areas of Low-Income Countries,"
7518, University of Minnesota, Economic Development Center.
- Rosenzweig, Mark R, 1988. "Risk, Implicit Contracts and the Family in Rural Areas of Low-income Countries," Economic Journal, Royal Economic Society, vol. 98(393), pages 1148-70, December.
- Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
- G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
- Fafchamps, Marcel, 1998. "The Tragedy of the Commons, Livestock Cycles and Sustainability," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(3), pages 384-423, October.
- repec:cai:poeine:pope_504_0331 is not listed on IDEAS
- Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
- Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
- Clay, Daniel C., 1996. "Fighting an Uphill Battle: Population Pressure and Declining Land Productivity in Rwanda," Food Security International Development Working Papers 54692, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12425.
- repec:wbk:wbpubs:12426 is not listed on IDEAS
- John McPeak, 2004. "Contrasting income shocks with asset shocks: livestock sales in northern Kenya," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 263-284, April.
- Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January.
When requesting a correction, please mention this item's handle: RePEc:eee:deveco:v:88:y:2009:i:1:p:67-86. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.