Understanding the investment and abandonment behavior of poor households: An empirical investigation
This paper 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...
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2008
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| Acceso en línea: | https://hdl.handle.net/10568/160913 |
| _version_ | 1855539581860970496 |
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| 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 paper 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 | Artículo preliminar |
| id | CGSpace160913 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2008 |
| publishDateRange | 2008 |
| publishDateSort | 2008 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1609132025-11-06T07:22:14Z Understanding the investment and abandonment behavior of poor households: An empirical investigation Hill, Ruth Vargas investment shock high-value agricultural products households This paper 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. 2008 2024-11-21T09:52:37Z 2024-11-21T09:52:37Z Working Paper https://hdl.handle.net/10568/160913 en Open Access application/pdf International Food Policy Research Institute Hill, Ruth Vargas. 2008. Understanding the investment and abandonment behavior of poor households. IFPRI Discussion Paper 783. https://hdl.handle.net/10568/160913 |
| spellingShingle | investment shock high-value agricultural products households Hill, Ruth Vargas Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title | Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title_full | Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title_fullStr | Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title_full_unstemmed | Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title_short | Understanding the investment and abandonment behavior of poor households: An empirical investigation |
| title_sort | understanding the investment and abandonment behavior of poor households an empirical investigation |
| topic | investment shock high-value agricultural products households |
| url | https://hdl.handle.net/10568/160913 |
| work_keys_str_mv | AT hillruthvargas understandingtheinvestmentandabandonmentbehaviorofpoorhouseholdsanempiricalinvestigation |