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Household Decision-making under Threat of Violence: A Micro Level Study in the Chittagong Hill Tracts of Bangladesh


  • Mohammad Badiuzzaman


  • John Cameron


  • Syed Mansoob Murshed



We analyze rural household livelihood and children’s educational investment decisions in a post-conflict setting located in the Chittagong Hill Tracts region of Bangladesh. The study represents a contribution to the microeconomic analysis of conflict. Another innovation of the paper lies in the fact that we employ information about subjective perceptions of violent experiences, which is in turn used to explain household economic decision making. Heightened subjective perceptions of violence lower consumption expenditure, but it can raise land use intensity, and more risky mixed crop cultivation. In some case experiences of displacement and other violence raises the likelihood of households sending children to school. This indicates that a specific postconflict ‘phoenix’ factor may be in operation, even without substantial infrastructure reconstruction. Also, the trauma emanating from actual past experiences combined with current high perceptions of risk of violence after an imperfect accord ending a lowintensity conflict may make people bolder and more risk taking in order to enhance their long-term future. We, therefore, also make a contribution to the literature on a non-linear relationship between violence and the temporal patterning of livelihood decision-making.

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  • Mohammad Badiuzzaman & John Cameron & Syed Mansoob Murshed, 2011. "Household Decision-making under Threat of Violence: A Micro Level Study in the Chittagong Hill Tracts of Bangladesh," Research Working Papers 39, MICROCON - A Micro Level Analysis of Violent Conflict.
  • Handle: RePEc:mcn:rwpapr:39

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    References listed on IDEAS

    1. 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.
    2. Wouterse, Fleur & Taylor, J. Edward, 2008. "Migration and Income Diversification:: Evidence from Burkina Faso," World Development, Elsevier, vol. 36(4), pages 625-640, April.
    3. Demirguc-Kunt, Asli & Klapper, Leora F. & Panos, Georgios A., 2009. "Entrepreneurship in post-conflict transition : the role of informality and access to finance," Policy Research Working Paper Series 4935, The World Bank.
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