SPECIAL SECTION: LAND USE OPTIONS IN DRY TROPICAL WOODLAND ECOSYSTEMS IN ZIMBABWE Household resource allocations in response to risks and returns in a communal area of western Zimbabwe

A household production model is constructed in the context of a subsistence economy, influenced by fluctuating rainfall, increasing populations, and relationships to the natural resource base. Households are modelled as attempting to optimally allocate their resources among four sectors: agriculture, woodlands (with wood and non-wood sub-sectors), livestock and urban. Simulations show that, although welfare decreases over the 50-year simulation period, the resource base appears to be able to sustain the increased pressure. Data to feed the model are limited, implying further research is needed on: resources expended by households by sector, perceptions of risk, and differentiation within and among households according to gender and wealth. Despite data limitations, results show the importance of considering that households may allocate resources between multiple sectors, as these options may buffer their welfare from rainfall shocks and increasing population pressures. © 2000 Elsevier Science B.V. All rights reserved. www.elsevier.com/locate/ecolecon