Do rural households smooth their consumption? Applying an asset-based approach to the case of Malawi
Smallholder farming households in most of the developing countries, live in environments that are characterized by substantial risk. They consequently develop a range of risk management strategies. However, analyzing household consumption smoothing behaviour requires the availability of both income and consumption data. Since household income data are usually unavailable in many developing countries, including Malawi, this paper develops an asset-based framework to analyze consumption smoothing behaviour at household and community levels using a two-period panel dataset on 259 rural households in Malawi. The results show that while consumption smoothing takes place at the household level, it is not perfect. Food consumption is protected more than non-food consumption. Risk sharing also takes place at the community level. The major policy implication is that social protection programmes should promote household asset accumulation to enable rural households manage livelihood risks better.
|Date of creation:||05 Jan 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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.:
- Morris, Saul Sutkover & Calogero, Carletto & Hoddinott, John & Christiaensen, Luc J. M., 1999. "Validity of rapid estimates of household wealth and income for health surveys in rural Africa," FCND discussion papers 72, International Food Policy Research Institute (IFPRI).
- Paxson, Christina H, 1993.
"Consumption and Income Seasonality in Thailand,"
Journal of Political Economy,
University of Chicago Press, vol. 101(1), pages 39-72, February.
- Fafchamps, Marcel & Lund, Susan, 2003.
"Risk-sharing networks in rural Philippines,"
Journal of Development Economics,
Elsevier, vol. 71(2), pages 261-287, August.
- Marcel Fafchamps & Susan Lund, . "Risk Sharing Networks in Rural Philippines," Working Papers 97014, Stanford University, Department of Economics.
- Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
- Harrower, Sarah & Hoddinott, John, 2004.
"Consumption soothing and vulnerability in the Zone Lacustre, Mali,"
175, International Food Policy Research Institute (IFPRI).
- Harrower, Sarah & Hoddinott, John, 2004. "Consumption soothing and vulnerability in the Zone Lacustre, Mali," FCND discussion papers 175, International Food Policy Research Institute (IFPRI).
- Robert M. Townsend, .
"Risk and Insurance in Village India,"
University of Chicago - Population Research Center
91-3a, Chicago - Population Research Center.
- Paul Mosley & Robert Holzmann & Steen Jorgensen, 1999.
"Social protection as social risk management: conceptual underpinnings for the social protection sector strategy paper,"
Journal of International Development,
John Wiley & Sons, Ltd., vol. 11(7), pages 1005-1027.
- Holzmann, Robert & Jorgensen, Steen, 1999. "Social protection as social risk management : conceptual underpinnings for the social protection sector strategy paper," Social Protection and Labor Policy and Technical Notes 20119, The World Bank.
- Grimard, Franque, 1997. "Household consumption smoothing through ethnic ties: evidence from Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 53(2), pages 391-422, August.
- Delphine M. Irac & Camelia Minoiu, 2007. "Risk insurance in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 153-173, 03.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:15398. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.