Beyond fatalism - an empirical exploration of self-efficacy and aspirations failure in Ethiopia
Fatalism is considered pervasive, not least within many poor communities. In this paper, we explore whether 'fatalistic' beliefs have implications for the attitudes and behaviour of poor rural households towards investment in the future. We first explore the idea of fatalism drawing inspiration from theories in psychology focusing on the role of locus of control and self-efficacy, and from the theoretical framework of aspiration failure as developed in recent economic literature. Using survey data from rural Ethiopia, we find evidence of fatalistic beliefs among a substantial group of rural households, as well as indicators consistent with a small aspiration gap and low self-efficacy. We also find that such beliefs consistently correlate with lower demand for credit, in terms of loan size, repayment horizon and productive purposes.
|Date of creation:||01 Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
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.:
- Hoff, Karla & Pandey, Priyanka, 2004. "Belief systems and durable inequalities : an experimental investigation of Indian caste," Policy Research Working Paper Series 3351, The World Bank.
- Hanming Fang & Glenn C. Loury, 2004.
"Toward An Economic Theory of Dysfunctional Identity,"
Cowles Foundation Discussion Papers
1483, Cowles Foundation for Research in Economics, Yale University.
- Hanming Fang & Glenn C. Loury, 2004. "Toward an Economic Theory of Dysfunctional Identity," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-146, Boston University - Department of Economics.
- Yamauchi, Futoshi, 2007.
"Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India,"
Journal of Development Economics,
Elsevier, vol. 83(1), pages 37-62, May.
- Yamauchi, Futoshi, 2005. "Social learning, neighborhood effects, and investment in human capital: Evidence from Green-Revolution India," FCND discussion papers 190, International Food Policy Research Institute (IFPRI).
- Nava Ashaf & Dean Karlan & Wesley Yin, 2006. "Tying odysseus to the mast: Evidence from a commitment savings product in the philippines," Natural Field Experiments 00206, The Field Experiments Website.
- Krishnan, P. & Krutikova, S., 2010. "Non-cognitive skill formation in poor neighbourhoods of urban India (updated 27-02-2012)," Cambridge Working Papers in Economics 1010, Faculty of Economics, University of Cambridge.
- Banerjee, Abhijit Vinayak & Benabou, Roland & Mookherjee, Dilip (ed.), 2006. "Understanding Poverty," OUP Catalogue, Oxford University Press, number 9780195305203, December.
- Michael Kremer & Edward Miguel, 2003. "Networks, social learning, and technology adoption: The case of deworming drugs in kenya," Natural Field Experiments 00312, The Field Experiments Website.
- Nava Ashraf & Dean Karlan & Wesley Yin, 2006. "Tying Odysseus to the Mast: Evidence From a Commitment Savings Product in the Philippines," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 635-672.
- Graham, Carol & Eggers, Andrew & Sukhtankar, Sandip, 2004. "Does happiness pay?: An exploration based on panel data from Russia," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 319-342, November.
- Dean Karlan & Jonathan Zinman, 2005. "Elasticities of Demand for Consumer Credit," Working Papers 926, Economic Growth Center, Yale University.
- Sourafel Girma & Abbi Kedir, 2005. "Heterogeneity in returns to schooling: Econometric evidence from Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1405-1416.
- Macours, Karen & Vakis, Renos, 2009. "Changing households'investments and aspirations through social interactions : evidence from a randomized transfer program," Policy Research Working Paper Series 5137, The World Bank.
- George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:csae-wps/2011-03. 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: (Monica Birds)
If references are entirely missing, you can add them using this form.