Growth and shocks: evidence from rural Ethiopia
نویسنده
چکیده
Using panel data from rural Ethiopia, the article discusses the determinants of consumption growth (1989–1997), based on a microgrowth model, controlling for heterogeneity. Consumption grew substantially, but with diverse experiences across villages and individuals. Rainfall shocks have a substantial impact on consumption growth, which persists for many years. There also is a persistent growth impact from the large-scale famine in the 1980s, as well as substantial externalities from road infrastructure. The persistent effects of rainfall shocks and the famine crisis imply that welfare losses due to the lack of insurance and protection measures are well beyond the welfare cost of short-term consumption fluctuations. D 2004 Elsevier B.V. All rights reserved. JEL classification: I32; O12; Q12
منابع مشابه
Growth, Shocks and Poverty during Economic Reform: evidence from rural Ethiopia, by Stefan Dercon. March 13, 2002
Using micro-level panel data from villages in rural Ethiopia, the paper studies consumption and poverty changes to analyse the determinants of growth and poverty changes during a period of economic reform (1989-97). Consumption grew and poverty fell substantially, but with diverse experiences across villages and individuals. During this period common and idiosyncratic shocks mattered for consum...
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