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.
|Date of creation:||2007|
|Date of revision:|
|Contact details of provider:|| Postal: De Bériotstraat 34, B-3000 Leuven|
Phone: +32 (0) 16 / 32 6598
Fax: +32 (0) 16 / 32 6599
Web page: http://www.econ.kuleuven.be/licos
More information through EDIRC
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.:
- 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.
- 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.
- Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
- 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.
- 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.
- Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, 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.
- Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
- 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.
- Marcel Fafchamps & Chris Udry & Katherine Czukas, . "Drought and Saving in West Africa: Are Livestock a Buffer Stock?," Working Papers 97013, Stanford University, Department of Economics.
- 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.
- 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.
- 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.
- Campbell, John Y, 1987. "Does Saving Anticipate Declining Labor Income? An Alternative Test of the Permanent Income Hypothesis," Econometrica, Econometric Society, vol. 55(6), pages 1249-73, November.
- 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.
- 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.
- 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.
- 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.
- repec:cai:poeine:pope_504_0331 is not listed on IDEAS
- 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.
- 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.
- Harounan Kazianga & Christopher Udry, 2004. "Consumption Smoothing? Livestock, Insurance and Drought in Rural Burkina Faso," Working Papers 898, Economic Growth Center, Yale University.
- Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
- Deaton, A., 1989.
"Saving And Liquidity Constraints,"
153, Princeton, Woodrow Wilson School - Public and International Affairs.
- 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.
- Lim, Y. & Townsend, R.M., 1997. "General Equilibrium Models of Financial Systems: Theory and Measurement in Village Economies," Papers 9716, Centro de Estudios Monetarios Y Financieros-.
- 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.
- 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.
- 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.
- repec:wbk:wbpubs:12425 is not listed on IDEAS
- 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.
- 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.
- 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.
- 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.
- World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426.
- 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.
- Stephen P. Zeldes, 1989. "Optimal Consumption with Stochastic Income: Deviations from Certainty Equivalence," The Quarterly Journal of Economics, Oxford University Press, vol. 104(2), pages 275-298.
When requesting a correction, please mention this item's handle: RePEc:lic:licosd:18907. 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: ()
If references are entirely missing, you can add them using this form.