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Investigating economywide and household-level impacts of sector-specific shocks in a poor country: The case of avian flu in Ethiopia

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Listed:
  • Ayele, Gezahegne
  • Birol, Ekin
  • Diao, Xinshen
  • Asare-Marfo, Dorene
  • Roy, Devesh
  • Thomas, Marcelle

Abstract

Do the economic effects of potential avian flu outbreaks justify policy attention and resource allocation in a poor country like Ethiopia? We address this question by assessing both economywide (macro-level) economic impacts and household (micro-level) livelihood impacts that might be caused by an avian flu outbreak in Ethiopia. Because 1) the prevalent traditional poultry sector is weakly linked to other sectors, 2) livelihoods of the poultry-producing households are diversified, and 3) shocks are idiosyncratic in nature, the study finds that the impacts of an avian flu outbreak are likely to be small and limited to producers who keep larger flocks. Therefore, allotment of funds to prevent the disease must be justified on the grounds of preventing spread of the disease to human populations in Ethiopia and in other countries where it might have more severe economic and health effects. In other words, resource allocation must be justified as a global public good.

Suggested Citation

  • Ayele, Gezahegne & Birol, Ekin & Diao, Xinshen & Asare-Marfo, Dorene & Roy, Devesh & Thomas, Marcelle, 2010. "Investigating economywide and household-level impacts of sector-specific shocks in a poor country: The case of avian flu in Ethiopia," IFPRI discussion papers 1034, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:ifprid:1034
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    References listed on IDEAS

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    1. Diao, Xinshen & Pratt, Alejandro Nin & Ghautam, Madhur & Keough, James & Chamberlin, Jordan & You, Liangszi & Puetz, Detlev & Resnick, Danielle & Yu, Bingxin, 2005. "Growth options and poverty reduction in Ethiopia," DSGD discussion papers 20, International Food Policy Research Institute (IFPRI).
    2. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    3. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    4. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    5. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    6. Cameron, A. Colin & Trivedi, Pravin K., 1990. "Regression-based tests for overdispersion in the Poisson model," Journal of Econometrics, Elsevier, vol. 46(3), pages 347-364, December.
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