Stochastic Wealth Dynamics and Risk Management Among A Poor Population  

Oleh:

Lybbert, Travis J. ; Barrett, Christopher B. ; Desta, Solomon ; Coppock, D. Layne

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 114 no. 498 (Oct. 2004), page 750-777.
Topik: risk management; stochastic; wealth dynamics; risk management; poor population
Fulltext: 750.pdf (248.03KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.15 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

We use herd history data collected among pastoralists in southern Ethiopia to study stochastic wealth dynamics among a poor population. Although covariate rainfall shocks plainly matter, household - specific factors, including own herd size, account for most observed variability in wealth dynamics. We find no support for the tragedy of the commons hypothesis. Past studies may have conflated costly self - insurance with stocking rate externalities. Biophysical shocks move households between multiple dynamic wealth equilibria - the lowest suggesting a poverty trap - according to nonconvex path dynamics. These findings have broad implications for development and relief strategies among a poor population vulnerable to climatic shocks.

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