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The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique

  • Tilman Brück

    ()

    (German Institute for Economic Research (DIW Berlin))

This paper analyses the effects of activity choices on farm household income and consumption in a war-affected developing country. The study uses household survey data from Mozambique and controls for the endogeneity of activity choices with instrumental variables. War-time activity choices (such as subsistence farming) are shown to enhance welfare in the post-war period. Market and social exchange induce limited welfare gains. Cotton adoption reduces household welfare, which contradicts previous studies not controlling for endogenous activity choices. The study thus demonstrates how standard predictions of economics may become invalid in post-war economies. Furthermore, the paper identifies pro-poor reconstruction policies.

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Paper provided by Households in Conflict Network in its series HiCN Working Papers with number 04.

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Length: 31 pages
Date of creation: May 2004
Date of revision:
Handle: RePEc:hic:wpaper:04
Contact details of provider: Web page: http://www.hicn.org

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  1. Stefan Dercon, 1993. "Risk, crop choice and savings: evidence from Tanzania," Economics Series Working Papers WPS/1993-02, University of Oxford, Department of Economics.
  2. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
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  4. Tschirley, David L. & Benfica, Rui M.S., 2000. "Smallholder Agriculture, Wage Labour, and Rural Poverty Alleviation in Mozambique: What Does the Evidence Tell Us?," Food Security Collaborative Working Papers 56041, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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  14. Frederic Zimmerman & MICHAEL R. CARTER, . "Asset Smoothing, Consumption Smoothing and the Reproduction for Inequality under Risk and Subsistence Constraints," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 402, Wisconsin-Madison Agricultural and Applied Economics Department.
  15. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
  16. Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
  17. 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.
  18. Adams, Richard H., Jr, 1999. "Nonfarm income, inequality, and land in Rural Egypt," Policy Research Working Paper Series 2178, The World Bank.
  19. Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August.
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