The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique
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.
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.:
- Dercon, Stefan, 1996.
"Risk, Crop Choice, and Savings: Evidence from Tanzania,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 44(3), pages 485-513, April.
- Stefan Dercon, 1993. "Risk, crop choice and saving: evidence from Tanzania," CSAE Working Paper Series 1993-02, Centre for the Study of African Economies, University of Oxford.
- Addison, Tony, 2001. "From Conflict to Reconstruction," WIDER Working Paper Series 016, World Institute for Development Economic Research (UNU-WIDER).
- Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
- Glewwe, P., 1990. "Investigating The Determinants Of Household Welfare In Cote D'Ivoire," Papers 71, World Bank - Living Standards Measurement.
- 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 233-254, May.
- Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
- Heltberg, Rasmus & Tarp, Finn, 2001. "Agricultural Supply Response and Poverty in Mozambique," WIDER Working Paper Series 114, World Institute for Development Economic Research (UNU-WIDER).
- Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
- Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302.
- Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-1343, September.
- Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
- Adams, Richard H, Jr, 2002. "Nonfarm Income, Inequality, and Land in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 339-363, January.
- Adams, Richard H., Jr, 1999. "Nonfarm income, inequality, and land in Rural Egypt," Policy Research Working Paper Series 2178, The World Bank.
- Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
- Frederic Zimmerman & MICHAEL R. CARTER, "undated". "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.
- Tschirley, David L. & Weber, Michael T., 1994. "Food security strategies under extremely adverse conditions: The determinants of household income and consumption in rural Mozambique," World Development, Elsevier, vol. 22(2), pages 159-173, February.
- Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," World Bank Research Observer, World Bank Group, vol. 17(2), pages 141-166, September.
- Stefan Dercon, 2000. "Income risk, coping strategies and safety nets," CSAE Working Paper Series 2000-26, Centre for the Study of African Economies, University of Oxford.
- Dercon, Stefan, 2002. "Income Risk, Coping Strategies and Safety Nets," WIDER Working Paper Series 022, World Institute for Development Economic Research (UNU-WIDER).
- Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August.
- 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.
- Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, September.
- Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
- Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
- 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.
- 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.
- Kennedy, Eileen T. & Cogill, Bruce, 1987. "Income and nutritional effects of the commercialization of agriculture in southwestern Kenya:," Research reports 63, International Food Policy Research Institute (IFPRI).
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November. Full references (including those not matched with items on IDEAS)