Aspirations and investments in livestock: Evidence of aspiration failure in Kenya

Aspirations influence future-oriented behavior and ensuing outcomes but they may also fail to do so when the aspired-to-status is far away from the current one. Theoretical predictions suggest an inverted U-shaped relationship between this aspiration gap and the effort to achieve what is aspired to....

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Main Authors: Tabe-Ojong, Martin Paul Jr., Heckelei, Thomas, Rasch, Sebastian
Format: Journal Article
Language:Inglés
Published: Wiley 2023
Subjects:
Online Access:https://hdl.handle.net/10568/131465
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author Tabe-Ojong, Martin Paul Jr.
Heckelei, Thomas
Rasch, Sebastian
author_browse Heckelei, Thomas
Rasch, Sebastian
Tabe-Ojong, Martin Paul Jr.
author_facet Tabe-Ojong, Martin Paul Jr.
Heckelei, Thomas
Rasch, Sebastian
author_sort Tabe-Ojong, Martin Paul Jr.
collection Repository of Agricultural Research Outputs (CGSpace)
description Aspirations influence future-oriented behavior and ensuing outcomes but they may also fail to do so when the aspired-to-status is far away from the current one. Theoretical predictions suggest an inverted U-shaped relationship between this aspiration gap and the effort to achieve what is aspired to. Aspirations that are ahead but not too far ahead of the current status serve as the best incentives for investments. We examine the income aspiration gap of smallholder households and relate it to livestock in a pastoral setting in Northern Kenya. Our focus on livestock is guided by the burgeoning recognition of livestock as an investment and saving conduit for many households in pastoral communities in developing nations. Employing different empirical strategies including parametric and semi-parametric techniques, we find livestock to be increasing with aspirations up to a threshold, from which it then declines to lead to an aspiration failure. Delving into livestock heterogeneity, we uncover evidence that cattle and poultry respond more to the aspiration gap than small ruminants such as sheep and goats. Different U-shaped tests confirm this relationship, bolstering the evidence of an aspiration failure. These findings are robust to the inclusion of relevant controls, truncations at zero, and different variable transformations. We also show that the findings are unlikely to be driven by unobserved heterogeneity. Additionally, we find that internal locus of control, that is the degree to which individuals believe they control outcomes in their lives is associated with livestock investments.
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spelling CGSpace1314652025-02-24T06:46:22Z Aspirations and investments in livestock: Evidence of aspiration failure in Kenya Tabe-Ojong, Martin Paul Jr. Heckelei, Thomas Rasch, Sebastian investment livestock economic development savings constraints behaviour households poverty alleviation rural development smallholders Aspirations influence future-oriented behavior and ensuing outcomes but they may also fail to do so when the aspired-to-status is far away from the current one. Theoretical predictions suggest an inverted U-shaped relationship between this aspiration gap and the effort to achieve what is aspired to. Aspirations that are ahead but not too far ahead of the current status serve as the best incentives for investments. We examine the income aspiration gap of smallholder households and relate it to livestock in a pastoral setting in Northern Kenya. Our focus on livestock is guided by the burgeoning recognition of livestock as an investment and saving conduit for many households in pastoral communities in developing nations. Employing different empirical strategies including parametric and semi-parametric techniques, we find livestock to be increasing with aspirations up to a threshold, from which it then declines to lead to an aspiration failure. Delving into livestock heterogeneity, we uncover evidence that cattle and poultry respond more to the aspiration gap than small ruminants such as sheep and goats. Different U-shaped tests confirm this relationship, bolstering the evidence of an aspiration failure. These findings are robust to the inclusion of relevant controls, truncations at zero, and different variable transformations. We also show that the findings are unlikely to be driven by unobserved heterogeneity. Additionally, we find that internal locus of control, that is the degree to which individuals believe they control outcomes in their lives is associated with livestock investments. 2023-09 2023-08-08T09:33:07Z 2023-08-08T09:33:07Z Journal Article https://hdl.handle.net/10568/131465 en https://doi.org/10.22004/ag.econ.322435 Open Access Wiley Tabe-Ojong, Martin Paul Jr.; Heckelei, Thomas; and Rasch, Sebastian. 2023. Aspirations and investments in livestock: Evidence of aspiration failure in Kenya. Agricultural Economics 54(5): 674-696. https://doi.org/10.1111/agec.12785
spellingShingle investment
livestock
economic development
savings
constraints
behaviour
households
poverty alleviation
rural development
smallholders
Tabe-Ojong, Martin Paul Jr.
Heckelei, Thomas
Rasch, Sebastian
Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title_full Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title_fullStr Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title_full_unstemmed Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title_short Aspirations and investments in livestock: Evidence of aspiration failure in Kenya
title_sort aspirations and investments in livestock evidence of aspiration failure in kenya
topic investment
livestock
economic development
savings
constraints
behaviour
households
poverty alleviation
rural development
smallholders
url https://hdl.handle.net/10568/131465
work_keys_str_mv AT tabeojongmartinpauljr aspirationsandinvestmentsinlivestockevidenceofaspirationfailureinkenya
AT heckeleithomas aspirationsandinvestmentsinlivestockevidenceofaspirationfailureinkenya
AT raschsebastian aspirationsandinvestmentsinlivestockevidenceofaspirationfailureinkenya