Mental accounting and remittances: A study of rural Malawian households

Davies, Simon; Easaw, Joshy; Ghoshray, Atanu

doi:10.1016/j.joep.2009.03.003

Cited by 35 publications

(33 citation statements)

References 24 publications

(29 reference statements)

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“…Yang (2008), Cox Edwards and Ureta (2003), Calero et al (2009), Davies et al (2009) and Acosta (2006) do indeed nd a positive impact of remittances on child education. 2 However, remittances are not the only consequence of labor migration to the remaining households.…”

Section: Introductionmentioning

confidence: 91%

Impact of Paternal Temporary Absence on Children Left Behind

Booth

Tamura

2009

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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Section: Introductionmentioning

confidence: 91%

Impact of Paternal Temporary Absence on Children Left Behind

Booth

Tamura

2009

SSRN Journal

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“…Children working in the cities send remittances to their parents in the villages (Rempel & Lobdell, 1978) and those living within the villages make sure that their parents and close relatives are provided for. Studies in Malawi have shown that excluding business and cash crop income, mean remittances were worth 43% of the average total income of receiving households (Davies et al, 2006). Including business income, median remittance income was equal to 40% of median total income, making this estimate of the income share of remittances fairly robust.…”

Section: Social Capital In Rural Malawimentioning

confidence: 99%

The Role of Social Capital in Rural Household Food Security: The Case Study of Dowa and Lilongwe Districts in Central Malawi

Dzanja¹,

Christie²,

Fazey³

et al. 2015

JAS

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This paper explores the contribution of social capital on the rural household food security. Social capital is the ability of community actors to secure benefits by virtue of membership in social networks or other structures. In the past decade, consensus has emerged among scholars and practitioners of development that social capital can contribute significantly to the alleviation of poverty. Food insecurity is an indicator of poverty. This paper therefore takes this view by investigating the impact of social capital on the food security situation of rural people in developing countries, using the case study of Malawi in Sub-Saharan Africa. Using household survey data different social capital variables were incorporated into the household social welfare model, controlled by human capital, physical capital, household and geographical characteristics in order to test the linkage between social capital and rural household food security situation in the context of a developing country. Household food security status was improved by membership to farmers' organizations, household network size and engagement in voluntary activities. When all social capital variables were incorporated into the model the explanatory power of the model improved by 20% on household food security.We conclude that social capital has positive influence on household food security; however, the effects vary depending on the nature of social capital. The results indicate the significance of social networks in improving the socio-economic livelihoods of the people in rural areas in developing countries.

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“…For example, cross-sectional studies on remittance behaviors of rural households in Malawi [26] and investment behaviors of the poor in Kenya [27] have demonstrated the adaptability of MA.…”

Section: Applicability Of Mental Accounting (Ma)mentioning

confidence: 99%

Understanding Farmers’ Decision-Making in Agricultural Water Fee Payment in China: The Role of Mental Accounting

Zhang

et al. 2016

Water

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Abstract:To better understand farmers' refusal to pay agricultural water fees under the current policy in rural China and their corresponding negative emotions, this paper applies mental accounting, a behavioral economics framework, to explore how the governmental policies of reform of rural taxes and fees, direct agricultural subsidy programs, and agricultural water fees individually influence farmers' decisions in paying the agricultural water fees. Using fieldwork data from 577 farmers and 20 water managers in Sichuan, we explore farmers' information processing regarding paying agricultural water fees via three sequential mental accounting processes, with the associated underlying principles and measures behind each process. We find that the information processing in three mental accounting scenarios related to the agricultural water fee elucidates farmers' observed behaviors in rural China. Generally, in the three mental accounting scenarios, two conditional intuitive expectations and nine conditional intuitive preferences are formed; however, the conditions of those expectations or preferences cannot be matched with the facts due to the reform of rural taxes and fees, the direct agricultural subsidy programs, and the internal attributes of agricultural water fee, which interpret those negative behaviors in rural China. Additionally, this paper offers a view into how previous policies create negative psychological externalities (such as farmers' psychological dependence on the government) through mental accounting to negatively influence agents' subsequent decision-making; it highlights the significance of underlying mental factors and information processing of negative behaviors in policymaking for managing or conserving common pool resources.

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Mental accounting and remittances: A study of rural Malawian households

Cited by 35 publications

References 24 publications

Impact of Paternal Temporary Absence on Children Left Behind

Impact of Paternal Temporary Absence on Children Left Behind

The Role of Social Capital in Rural Household Food Security: The Case Study of Dowa and Lilongwe Districts in Central Malawi

Understanding Farmers’ Decision-Making in Agricultural Water Fee Payment in China: The Role of Mental Accounting

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