Stochastic wealth dynamics and risk management among a poor population

We use herd history data collected among pastoralists in southern Ethiopia to study stochastic wealth dynamics among a poor population. Although covariate rainfall shocks plainly matter, household-specific factors, including own herd size, account for most observed variability in wealth dynamics. We...

Full description

Bibliographic Details
Main Authors: Lybbert, T.J., Barrett, Christopher B., Desta, S., Coppock, D. Layne
Format: Journal Article
Language:Inglés
Published: Oxford University Press 2004
Online Access:https://hdl.handle.net/10568/916
_version_ 1855538079918456832
author Lybbert, T.J.
Barrett, Christopher B.
Desta, S.
Coppock, D. Layne
author_browse Barrett, Christopher B.
Coppock, D. Layne
Desta, S.
Lybbert, T.J.
author_facet Lybbert, T.J.
Barrett, Christopher B.
Desta, S.
Coppock, D. Layne
author_sort Lybbert, T.J.
collection Repository of Agricultural Research Outputs (CGSpace)
description We use herd history data collected among pastoralists in southern Ethiopia to study stochastic wealth dynamics among a poor population. Although covariate rainfall shocks plainly matter, household-specific factors, including own herd size, account for most observed variability in wealth dynamics. We find no support for the tragedy of the commons hypothesis. Past studies may have conflated costly self-insurance with stocking rate externalities. Biophysical shocks move households between multiple dynamic wealth equilibria – the lowest suggesting a poverty trap – according to nonconvex path dynamics. These findings have broad implications for development and relief strategies among a poor population vulnerable to climatic shocks.
format Journal Article
id CGSpace916
institution CGIAR Consortium
language Inglés
publishDate 2004
publishDateRange 2004
publishDateSort 2004
publisher Oxford University Press
publisherStr Oxford University Press
record_format dspace
spelling CGSpace9162024-03-06T10:16:43Z Stochastic wealth dynamics and risk management among a poor population Lybbert, T.J. Barrett, Christopher B. Desta, S. Coppock, D. Layne We use herd history data collected among pastoralists in southern Ethiopia to study stochastic wealth dynamics among a poor population. Although covariate rainfall shocks plainly matter, household-specific factors, including own herd size, account for most observed variability in wealth dynamics. We find no support for the tragedy of the commons hypothesis. Past studies may have conflated costly self-insurance with stocking rate externalities. Biophysical shocks move households between multiple dynamic wealth equilibria – the lowest suggesting a poverty trap – according to nonconvex path dynamics. These findings have broad implications for development and relief strategies among a poor population vulnerable to climatic shocks. 2004-10-01 2010-03-25T06:34:09Z 2010-03-25T06:34:09Z Journal Article https://hdl.handle.net/10568/916 en Open Access Oxford University Press Lybbert, T.J.; Barrett, C.B.; Desta, S.; Coppock, D.L. 2004. Stochastic wealth dynamics and risk management among a poor population. The Economic Journal. 114(498):750-777.
spellingShingle Lybbert, T.J.
Barrett, Christopher B.
Desta, S.
Coppock, D. Layne
Stochastic wealth dynamics and risk management among a poor population
title Stochastic wealth dynamics and risk management among a poor population
title_full Stochastic wealth dynamics and risk management among a poor population
title_fullStr Stochastic wealth dynamics and risk management among a poor population
title_full_unstemmed Stochastic wealth dynamics and risk management among a poor population
title_short Stochastic wealth dynamics and risk management among a poor population
title_sort stochastic wealth dynamics and risk management among a poor population
url https://hdl.handle.net/10568/916
work_keys_str_mv AT lybberttj stochasticwealthdynamicsandriskmanagementamongapoorpopulation
AT barrettchristopherb stochasticwealthdynamicsandriskmanagementamongapoorpopulation
AT destas stochasticwealthdynamicsandriskmanagementamongapoorpopulation
AT coppockdlayne stochasticwealthdynamicsandriskmanagementamongapoorpopulation