Investment and abandonment behavior of rural households: An empirical investigation
This article uses models of irreversible investment under uncertainty to examine the investment and abandonment behavior of poor rural households. It considers the decision of Ugandan coffee‐farming households to invest in or abandon coffee trees. The observed levels of investment and abandonment ar...
| Main Author: | |
|---|---|
| Format: | Journal Article |
| Language: | Inglés |
| Published: |
Wiley
2010
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/154612 |
| _version_ | 1855531483836448768 |
|---|---|
| author | Hill, Ruth Vargas |
| author_browse | Hill, Ruth Vargas |
| author_facet | Hill, Ruth Vargas |
| author_sort | Hill, Ruth Vargas |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This article uses models of irreversible investment under uncertainty to examine the investment and abandonment behavior of poor rural households. It considers the decision of Ugandan coffee‐farming households to invest in or abandon coffee trees. The observed levels of investment and abandonment are found to be consistent with models of investment that allow for irreversibility, uncertainty, fixed costs, and liquidity constraints. The findings highlight the importance of addressing volatility, irreversibility, fixed costs, and liquidity constraints in order to increase households’ responsiveness to changes in the fundamentals and to enable households to recover from shocks to their capital stock. |
| format | Journal Article |
| id | CGSpace154612 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2010 |
| publishDateRange | 2010 |
| publishDateSort | 2010 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1546122024-11-15T08:52:46Z Investment and abandonment behavior of rural households: An empirical investigation Hill, Ruth Vargas agriculture This article uses models of irreversible investment under uncertainty to examine the investment and abandonment behavior of poor rural households. It considers the decision of Ugandan coffee‐farming households to invest in or abandon coffee trees. The observed levels of investment and abandonment are found to be consistent with models of investment that allow for irreversibility, uncertainty, fixed costs, and liquidity constraints. The findings highlight the importance of addressing volatility, irreversibility, fixed costs, and liquidity constraints in order to increase households’ responsiveness to changes in the fundamentals and to enable households to recover from shocks to their capital stock. 2010-07 2024-10-01T14:02:40Z 2024-10-01T14:02:40Z Journal Article https://hdl.handle.net/10568/154612 en Limited Access Wiley Hill, Ruth Vargas. 2010. Investment and abandonment behavior of rural households: An empirical investigation. American Journal of Agricultural Economics 92(4): 1065-1086. https://doi.org/10.1093/ajae/aaq055 |
| spellingShingle | agriculture Hill, Ruth Vargas Investment and abandonment behavior of rural households: An empirical investigation |
| title | Investment and abandonment behavior of rural households: An empirical investigation |
| title_full | Investment and abandonment behavior of rural households: An empirical investigation |
| title_fullStr | Investment and abandonment behavior of rural households: An empirical investigation |
| title_full_unstemmed | Investment and abandonment behavior of rural households: An empirical investigation |
| title_short | Investment and abandonment behavior of rural households: An empirical investigation |
| title_sort | investment and abandonment behavior of rural households an empirical investigation |
| topic | agriculture |
| url | https://hdl.handle.net/10568/154612 |
| work_keys_str_mv | AT hillruthvargas investmentandabandonmentbehaviorofruralhouseholdsanempiricalinvestigation |