Shocks and stability of risk and time preferences among poor rural households in Ethiopia
This paper examines the effects of shocks on temporal stability of risk and time preferences of rural households within a developing country context characterized by frequent droughts, chronic food insecurity, and low levels of education. Leveraging a three-wave large and diverse household panel dat...
| Autores principales: | , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Oxford University Press
2025
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| Acceso en línea: | https://hdl.handle.net/10568/141860 |
| _version_ | 1855539342856945664 |
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| author | Meles, Tensay Hadush Abay, Mehari Hiluf Berhane, Guush Taffesse, Alemayehu Seyoum |
| author_browse | Abay, Mehari Hiluf Berhane, Guush Meles, Tensay Hadush Taffesse, Alemayehu Seyoum |
| author_facet | Meles, Tensay Hadush Abay, Mehari Hiluf Berhane, Guush Taffesse, Alemayehu Seyoum |
| author_sort | Meles, Tensay Hadush |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This paper examines the effects of shocks on temporal stability of risk and time preferences of rural households within a developing country context characterized by frequent droughts, chronic food insecurity, and low levels of education. Leveraging a three-wave large and diverse household panel data that elicits preferences every two years for more than 6,500 individuals from over 5,600 sample rural households in Ethiopia, we analyze the effects of droughts (self-reported) and rainfall shortfalls on household risk and time preferences. Our findings show that households become more risk-averse and impatient after experiencing drought and rainfall shocks; the change in risk preferences is more notable among households that experience recurrent droughts and multiple covariate shocks during the same period. |
| format | Journal Article |
| id | CGSpace141860 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Oxford University Press |
| publisherStr | Oxford University Press |
| record_format | dspace |
| spelling | CGSpace1418602025-10-26T12:55:35Z Shocks and stability of risk and time preferences among poor rural households in Ethiopia Meles, Tensay Hadush Abay, Mehari Hiluf Berhane, Guush Taffesse, Alemayehu Seyoum food insecurity households poverty rural areas shock This paper examines the effects of shocks on temporal stability of risk and time preferences of rural households within a developing country context characterized by frequent droughts, chronic food insecurity, and low levels of education. Leveraging a three-wave large and diverse household panel data that elicits preferences every two years for more than 6,500 individuals from over 5,600 sample rural households in Ethiopia, we analyze the effects of droughts (self-reported) and rainfall shortfalls on household risk and time preferences. Our findings show that households become more risk-averse and impatient after experiencing drought and rainfall shocks; the change in risk preferences is more notable among households that experience recurrent droughts and multiple covariate shocks during the same period. 2025-03-07 2024-05-15T20:22:22Z 2024-05-15T20:22:22Z Journal Article https://hdl.handle.net/10568/141860 en Limited Access Oxford University Press Meles, Tensay Hadush; Abay, Mehari Hiluf; Berhane, Guush; and Taffesse, Alemayehu Seyoum. 2025. Shocks and stability of risk and time preferences among poor rural households in Ethiopia. Journal of African Economies 34(2): 184–207. https://doi.org/10.1093/jae/ejae005 |
| spellingShingle | food insecurity households poverty rural areas shock Meles, Tensay Hadush Abay, Mehari Hiluf Berhane, Guush Taffesse, Alemayehu Seyoum Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title | Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title_full | Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title_fullStr | Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title_full_unstemmed | Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title_short | Shocks and stability of risk and time preferences among poor rural households in Ethiopia |
| title_sort | shocks and stability of risk and time preferences among poor rural households in ethiopia |
| topic | food insecurity households poverty rural areas shock |
| url | https://hdl.handle.net/10568/141860 |
| work_keys_str_mv | AT melestensayhadush shocksandstabilityofriskandtimepreferencesamongpoorruralhouseholdsinethiopia AT abaymeharihiluf shocksandstabilityofriskandtimepreferencesamongpoorruralhouseholdsinethiopia AT berhaneguush shocksandstabilityofriskandtimepreferencesamongpoorruralhouseholdsinethiopia AT taffessealemayehuseyoum shocksandstabilityofriskandtimepreferencesamongpoorruralhouseholdsinethiopia |