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

Author

Listed:
  • Gloria M. Rubio

    (Fundación Universidad de las Américas, Puebla, Departamento de Economia)

  • Isidro Soloaga

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

  • Gloria M. Rubio & Isidro Soloaga, 2004. "Assessing the Vulnerability of Agricultural Households to Macroeconomic Shocks: Evidence from Mexico," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 45-62.
    • Handle: RePEc:fao:tejade:v:1:y:2004:i:1:p:45-62
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    References listed on IDEAS

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    1. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
    2. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    3. David J. McKenzie, 2006. "Disentangling Age, Cohort and Time Effects in the Additive Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 473-495, August.
    4. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, vol. 31(7), pages 1179-1199, July.
    5. Canagarajah, P. Sudharshan & Siegel, Paul B. & Heitzmann, Karin, 2002. "Guidelines for assessing the sources of risk and vulnerability," Social Protection Discussion Papers and Notes 31372, The World Bank.
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    Cited by:

    1. 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.
    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.

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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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