for his wise counsel, concrete suggestions, his inspiring, meticulous and affectionate guidance, constant help and persistent encouragement during the course of my study and prosecution of research work. I take it as a great privilege and pride to have an opportunity of working under his unending inspiring and indomitable spirit.
Using data on household consumption we have examined the incidence of vulnerability of rural households to poverty and nutritional insecurity in the state of Rajasthan, a large part of which is arid. Our findings show that ex ante poverty is less (7.7%) than ex post poverty (12.4%). Surprisingly, there appears to be a disconnect between poverty and undernourishment; the incidence of nutritional insecurity is much higher than the incidence of poverty. However, there are significant regional differences; households in the southern region, and non-agricultural and socially disadvantaged households, are more vulnerable to poverty and nutritional insecurity. Keywords Undernourishment, poverty, vulnerability to expected poverty (VEP), vulnerability to expected undernourishment (VEU) JEL classification Q01, Q18, I32* To estimate calorie and protein intake, we converted all household members into consumer units following the norms in GoI ( 2014).
Based on our analysis it can be concluded that the formal risk aversion mechanism has limited scope in the disaster-prone areas of the country. Addressing the assessment and adequacy of compensation amount along with information asymmetry in the formal insurance market should be a top priority for improving the efficacy. The ex-post measures under formal risk coping also have limited impact, indicating the underdevelopment of insurance and commercial credit markets in the region. Ex-ante risk aversion mechanism, particularly climate-resilient technologies may be conducive to the stable increase of farmers’ income and the continuous development of rural economy in the long-run. Therefore, it is of great significance to provide farmers with assistance to address the income risk in better terms.
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