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Asset Versus Consumption Poverty and Poverty Dynamics in the Presence of Multiple Equilibria in Rural Ethiopia

Asset Versus Consumption Poverty and Poverty Dynamics in the Presence of Multiple Equilibria in Rural Ethiopia PDF Author: Lenis Saweda O. Liverpool
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

Book Description
Effective poverty reduction programs require careful measurement of poverty status. Several studies have shown conceptually that assets reflecting productive capacity form a more robust basis for identifying the poor than do flow variables such as expenditures or income. Nonetheless, little work has empirically compared poverty measurements based on assets and expenditures. This paper uses panel data from Ethiopia to generate an asset-based poverty classification scheme. Regression results are used to estimate an asset index and classify households into categories of structural poverty. Asset index dynamics are also explored to test for the existence of multiple asset index equilibria; evidence of potential poverty traps. Results provide evidence of multiple equilibria in the study sample as a whole as well as convergence at different levels over space, depending on commercialization opportunities and agroecological factors. The asset-based poverty classifications consistently predict future poverty status more accurately than do income-based measures, confirming that the asset-based measure could be used to more carefully target poverty interventions in rural areas and to more accurately assess the impact of those interventions.

Asset Versus Consumption Poverty and Poverty Dynamics in the Presence of Multiple Equilibria in Rural Ethiopia

Asset Versus Consumption Poverty and Poverty Dynamics in the Presence of Multiple Equilibria in Rural Ethiopia PDF Author: Lenis Saweda O. Liverpool
Publisher:
ISBN:
Category :
Languages : en
Pages : 30

Book Description
Effective poverty reduction programs require careful measurement of poverty status. Several studies have shown conceptually that assets reflecting productive capacity form a more robust basis for identifying the poor than do flow variables such as expenditures or income. Nonetheless, little work has empirically compared poverty measurements based on assets and expenditures. This paper uses panel data from Ethiopia to generate an asset-based poverty classification scheme. Regression results are used to estimate an asset index and classify households into categories of structural poverty. Asset index dynamics are also explored to test for the existence of multiple asset index equilibria; evidence of potential poverty traps. Results provide evidence of multiple equilibria in the study sample as a whole as well as convergence at different levels over space, depending on commercialization opportunities and agroecological factors. The asset-based poverty classifications consistently predict future poverty status more accurately than do income-based measures, confirming that the asset-based measure could be used to more carefully target poverty interventions in rural areas and to more accurately assess the impact of those interventions.

Using Asset Poverty Measures to Understand Poverty Dynamics, Poverty Traps and Farmer Behavior in Sub-Saharan Africa: A Focus on Rural Ethiopia

Using Asset Poverty Measures to Understand Poverty Dynamics, Poverty Traps and Farmer Behavior in Sub-Saharan Africa: A Focus on Rural Ethiopia PDF Author: Lenis Saweda Liverpool
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description
Effective poverty reduction programs require careful measurement of poverty status. Commonly used consumption or income-based classifications of poverty aggregate together households that are persistently poor with those who are only in poverty due to passing conditions. They also classify as non-poor households that are at risk of falling into poverty as well as those that are not at risk. The tendency to group households that are likely to exit poverty independently with other poor households who lack this ability undermines the targeting of interventions to alleviate poverty and distorts evaluation of anti-poverty programs. Asset-based poverty measures enable more nuanced identification of poverty status, but these methods raise methodological problems when estimating the relationship between assets and livelihood. This dissertation uses panel data from Ethiopia to generate an asset-based poverty classification scheme. Regression results are used to derive an asset index and classify households into various categories of poverty. Asset index dynamics are also explored to test for the existence of multiple asset index equilibria; evidence of poverty traps. Results provide evidence of multiple equilibria in the study sample as a whole as well as convergence at different levels for different peasant associations, depending on commercialization opportunities and agro- ecological factors. The asset-based poverty classifications predict future poverty status more accurately than income-based measures implying that the asset-based measure could be used to more carefully target poverty interventions and to more accurately assess the impact of those interventions. Microfinance is often touted as a practical means of helping rural poor overcome capital constraints, and invest in new technology. Using an asset-based approach to poverty measurement and classification chapter three of this dissertation asks whether microfinance has a differential impact on use of improved technology and on consumption and asset growth depending on the family0́9s asset poverty status. The analysis finds no relationship between participation in microfinance programs and the use of modern technologies for the poorest households. Microfinance has a positive direct effect on both consumption and asset growth as well as on the use of modern technology among the relatively wealthier (less poor) households. I find that households who use fertilizer tend to enjoy more rapid consumption growth, and greater accumulation of productive assets, irrespective of their poverty status, but microfinance has no effect on the likelihood of fertilizer use among the poorest households. This implies that while modern technology could present a pathway out of persistent poverty, current formal credit programs are not serving the poorest households in this endeavor. The findings confirm the need to closely assess constraints faced by different classes of poor households and suggest the value of asset based poverty classifications in identifying target groups. The adoption and use of modern technologies is generally accepted as a potential vehicle out of poverty but adoption rates in Ethiopia remain low with the nature of the adoption process largely unstudied (Spielman, 2007). Chapter 4 of this dissertation studies the impact of social networks and social leanring on technology adoption in rural Ethiopia. Considering the potentially different marginal benefits of reducing information constraints by poverty status and technology type, the chapter explores the differential impacts of social networks by network type, technology and the asset poverty status of households. In addition to geographic networks, it considers the role played by networks with more purposeful interactions such as a household0́9s friends. Results confirm the presence of social learning among farmers in rural Ethiopia, with significant difference across network type, farmer type and technologies. Social learning occurs in networks with purposeful interaction and depending on the technology this effect differs across households experiencing different degrees of poverty.

Nonlinear Dynamics of Livestock Assets

Nonlinear Dynamics of Livestock Assets PDF Author: Bjorn Van Campenhout
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

Book Description
Recent research on the intertemporal dynamics of poverty using microeconomic data often hints at the existence of poverty traps, where some find themselves trapped at a low-level stable equilibrium while others enjoy a higher stable equilibrium. Without a sizable positive shock to well-being, those trapped at the low equilibrium will not automatically outgrow destitution, but merely fluctuate around that low-level equilibrium. Given the dramatic policy consequences implied by such a theory, knowledge about the location of the different equilibria would be extremely helpful. In this paper, we explore the possibilities of threshold-type models to identify those crucial parameters. We illustrate the method by searching for traps in the dynamics of livestock asset holdings in rural Ethiopia. We find evidence of distribution-dependent dynamics and multiple equilibria for tropical livestock units.

Essays on Poverty, Risk and Consumption Dynamics in Ethiopia

Essays on Poverty, Risk and Consumption Dynamics in Ethiopia PDF Author: Abebe Shimeles
Publisher: Goteborg University
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 188

Book Description


Informal Risk Sharing Strategies and Poverty Dynamics in Rural Ethiopia

Informal Risk Sharing Strategies and Poverty Dynamics in Rural Ethiopia PDF Author: Andinet Delelegn
Publisher:
ISBN:
Category : Risk management
Languages : en
Pages : 44

Book Description


The Dynamics of Rural Poverty

The Dynamics of Rural Poverty PDF Author: Dessalegn Rahmato
Publisher: Codesria
ISBN:
Category : Social Science
Languages : en
Pages : 76

Book Description


The Bumpy Road to Universal Health Coverage

The Bumpy Road to Universal Health Coverage PDF Author: Martin Eckhardt
Publisher: Linköping University Electronic Press
ISBN: 9176852709
Category :
Languages : en
Pages : 111

Book Description
Background: By the turn of the new millennium 84% of families in rural coastal Ecuador had difficulties to access health services. A health reform some years earlier to improve this situation had not been implemented. In 2001, the non-governmental organization (NGO) Foundation Human Nature together with a rural population established a primary health care center in North-Western Ecuador. A public private partnership with the Ministry of Public Health was formed. Services depended on out-ofpocket payments, restricting the poor’s access to care. In order to increase access to primary and emergency care, Foundation Human Nature planned to establish a community-based health insurance. In the meantime, a major health reform was initiated by a new government in 2008. It aimed at universal health coverage, providing qualitative services for all based on primary health care, while ensuring protection from financial hardship. The aims of this thesis were to appraise the feasibility of community- based health insurance in Ecuador; to study how rural stakeholders perceived the 2008 reform and its effects on rural health services; to explore the local population’s perception of the NGO in service delivery; and to measure the scope and describe the nature of perceived emergencies, the related health care seeking behavior and health expenditure. Methods: Quantitative and qualitative methods were applied to tackle the research objectives. Data collection for the health insurance study and the study of perceived emergencies was carried out through cross-sectional household surveys. For each of the studies 210 households were sampled with two-stage cluster sampling. Structured questionnaires were used with on the spot household interviews. Focus group discussions with local stakeholders were performed to explore their perceived effects of the 2008 health reform. The population’s perception of the NGO was also studied through focus group discussions, which were complemented by key-informant interviews with local stakeholders. Inductive qualitative content analysis, focusing on the manifest content was applied. Results: 69% of interviewees were willing to join the presented community- based health insurance scheme for 30 US$ per household and year. Attitudes towards the scheme were positive and 92% of interviewees stated they would increase their health service utilization with affiliation. The implementation of the 2008 health reform was perceived as topdown, lacking communication. However, the reform’s effects were mainly perceived as positive with free medical attendance and drugs. Increased service utilization was described as leading to a relative shortage of drugs and appointments. Access problems for remote dwellers were found, who were described of having to seek private care, also in emergencies. The NGO and its services were perceived positively by the population due to health care improvements in the region. The structure of the public private partnership was unclear, leading to dissatisfaction. Community participation was found to be rather weak. Perceived emergencies occurred to at least 90/1,000 inhabitants in the past year. Fever, traumatic injury and abdominal pain were the most frequent chief complaints. The first contacted providers in 57% of all cases were private for-profit providers, including traditional healers. Public health services treated one third of all cases. Health expenditure was found to be high and catastrophic health expenditure occurred in 24% of all cases. Conclusions: Prior to the 2008 reform community-based health insurance was found to be feasible in the study region. This financing instrument may have a role in the post-reform system, to cover services that the government does not yet sufficiently provide. The effects of the 2008 reform were mainly perceived positively, but an adjustment of the system is needed to improve the relative lack of drugs and appointments, especially for remote dwellers. Free health services may not be sufficient to reach universal health coverage for patients with perceived emergencies. Changes in public emergency departments and improved financial protection for emergency patients may improve the situation. The NGO’s role was perceived positively by the population. A lack of communication about the public private partnership and relatively weak community participation restricted the NGO’s full potential and should be improved.

Dynamics and Drivers of Consumption and Multidimensional Poverty : Evidence from Rural Ethiopia

Dynamics and Drivers of Consumption and Multidimensional Poverty : Evidence from Rural Ethiopia PDF Author: Tilman Brück
Publisher:
ISBN:
Category :
Languages : en
Pages :

Book Description


The Economics of Poverty Traps

The Economics of Poverty Traps PDF Author: Christopher B. Barrett
Publisher: University of Chicago Press
ISBN: 022657430X
Category : Business & Economics
Languages : en
Pages : 425

Book Description
What circumstances or behaviors turn poverty into a cycle that perpetuates across generations? The answer to this question carries especially important implications for the design and evaluation of policies and projects intended to reduce poverty. Yet a major challenge analysts and policymakers face in understanding poverty traps is the sheer number of mechanisms—not just financial, but also environmental, physical, and psychological—that may contribute to the persistence of poverty all over the world. The research in this volume explores the hypothesis that poverty is self-reinforcing because the equilibrium behaviors of the poor perpetuate low standards of living. Contributions explore the dynamic, complex processes by which households accumulate assets and increase their productivity and earnings potential, as well as the conditions under which some individuals, groups, and economies struggle to escape poverty. Investigating the full range of phenomena that combine to generate poverty traps—gleaned from behavioral, health, and resource economics as well as the sociology, psychology, and environmental literatures—chapters in this volume also present new evidence that highlights both the insights and the limits of a poverty trap lens. The framework introduced in this volume provides a robust platform for studying well-being dynamics in developing economies.

Household Income Dynamics in Rural China

Household Income Dynamics in Rural China PDF Author: Jyotsna Jalan
Publisher:
ISBN:
Category : China
Languages : en
Pages : 36

Book Description
Is effective social protection an investment with long-term benefits? Does inequality impede growth? Household panel data on incomes in rural China offer some answers.