2006
DOI: 10.1080/00220380500405394
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Welfare dynamics in rural Kenya and Madagascar

Abstract: This paper presents comparative qualitative and quantitative evidence from rural Kenya and Madagascar in an attempt to untangle the causality behind persistent poverty. We find striking differences in welfare dynamics depending on whether one uses total income, including stochastic terms and inevitable measurement error, or the predictable, structural component of income based on a household's asset holdings. Our results suggest the existence of multiple dynamic asset and structural income equilibria, consiste… Show more

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Cited by 263 publications
(149 citation statements)
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References 31 publications
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“…This means prioritizing investments in programs targeted at poor or vulnerable households, such as transfers of cash, vouchers, food, or other goods, as suggested by poverty dynamics research in the region (Barrett et al 2006;Kristjanson et al 2010).…”
Section: Discussionmentioning
confidence: 99%
“…This means prioritizing investments in programs targeted at poor or vulnerable households, such as transfers of cash, vouchers, food, or other goods, as suggested by poverty dynamics research in the region (Barrett et al 2006;Kristjanson et al 2010).…”
Section: Discussionmentioning
confidence: 99%
“…N and P when applied together resulted in higher BCRs and the highest net benefits on all conversions, suggesting that soil fertility improvement strategies should strive to encompass both nutrients. Despite BCRs41 and positive net benefits of P and N and P fertilizer application, high fertilizer rates may not be affordable or may be too risky for many small farmers, and hence efforts to overcome fertility depletion in these systems are likely hampered by the high cost of fertilizer (Sanchez, 2002) relative to the average income of farmers in this region, which for 2003 was reported as 23 Kenya shillings per day (Barrett et al, 2006).…”
Section: Srmentioning
confidence: 99%
“…Given meager rainfall and infrastructure, the pastoralist populations who inhabit these areas rely heavily on extensive livestock grazing for their livelihood. Recent economic research, building on extensive prior ethnographic work, finds that east African pastoralists operate in an environment characterized by multiple herd size equilibria characteristic of poverty traps (Lybbert et al 2004, Barrett et al 2006. The prominent role that covariate climate risk plays in driving pastoral poverty traps (Santos and Barrett 2007) and growing concern that droughts are driving growing numbers of pastoralists into destitution (Sandford 2006, Little et al 2008, naturally motivated the recent development of index-based livestock insurance (IBLI) against catastrophic herd loss in the northern Kenyan ASAL (Chantarat et al 2009a).…”
Section: Introductionmentioning
confidence: 99%