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Investment and Abandonment Behavior of Rural Households

Ruth Vargas Hill
Investment and Abandonment Behavior of Rural Households by Ruth Vargas Hill PDF

Author : Ruth Vargas Hill
Publisher :
Page : 0 pages
File Size : 10,52 MB
Release : 2020
Category :
ISBN :

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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.

Agricultural Growth and Investment Options for Poverty Reduction in Malawi

Samuel Benin, James Thurlow, Xinshen Diao, Christen McCool, and Franklin Simtowe
Agricultural Growth and Investment Options for Poverty Reduction in Malawi by Samuel Benin, James Thurlow, Xinshen Diao, Christen McCool, and Franklin Simtowe PDF

Author : Samuel Benin, James Thurlow, Xinshen Diao, Christen McCool, and Franklin Simtowe
Publisher : Intl Food Policy Res Inst
Page : 64 pages
File Size : 41,46 MB
Release : 2009
Category : Social Science
ISBN :

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Agriculture employs three-quarters of the population of Malawi. It makes up more than forty percent of the economy and sixty percent of all exports. Yet productivity in agriculture--measured as the amount of output for a given amount of inputs--is considerably lower than it could be, given Malawi's agricultural resources. Efforts to expand the economy and reduce poverty must involve agriculture. Where should the Government of Malawi invest?