Conflict and the nature of precautionary wealth

Abstract This article examines the accumulation of precautionary wealth in Afghanistan using detailed data from a large household survey. A percent increase income variance is associated with 0.22 and 0.84% broad narrow wealth, respectively. response most pronounced at extremes distribution. Wealthy households rely exclusively on livestock, while less affluent use jewelry for self-insurance. Conflict amplifies motive, high-conflict provinces reporting higher same level uncertainty. An conflict intensity also an expansion livestock weight asset portfolio.