Publication:
Consumption Risk, Technology Adoption, and Poverty Traps : Evidence from Ethiopia

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dc.contributor.authorDercon, Stefan
dc.contributor.authorChristiaensen, Luc
dc.date.accessioned2012-06-07T17:28:57Z
dc.date.available2012-06-07T17:28:57Z
dc.date.issued2007-06
dc.description.abstractMuch has been written on the determinants of input and technology adoption in agriculture, with issues such as input availability, knowledge and education, risk preferences, profitability, and credit constraints receiving much attention. This paper focuses on a factor that has been less well documented-the differential ability of households to take on risky production technologies for fear of the welfare consequences if shocks result in poor harvests. Building on an explicit model, this is explored in panel data for Ethiopia. Historical rainfall distributions are used to identify the counterfactual consumption risk. Controlling for unobserved household and time-varying village characteristics, it emerges that not just ex-ante credit constraints, but also the possibly low consumption outcomes when harvests fail, discourage the application of fertilizer. The lack of insurance causes inefficiency in production choices.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/06/7726736/consumption-risk-technology-adoption-poverty-traps-evidence-ethiopia
dc.identifier.doi10.1596/1813-9450-4257
dc.identifier.urihttps://hdl.handle.net/10986/7417
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4257
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGENTS
dc.subjectAGRICULTURE
dc.subjectASSETS
dc.subjectBORROWING
dc.subjectBUDGET CONSTRAINT
dc.subjectBUDGET CONSTRAINTS
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMPTION DECISIONS
dc.subjectCONSUMPTION MODEL
dc.subjectCONSUMPTION PATH
dc.subjectCOST OF CREDIT
dc.subjectCREDIT CONSTRAINT
dc.subjectCREDIT MARKET
dc.subjectCREDIT MARKET IMPERFECTIONS
dc.subjectCREDIT MARKETS
dc.subjectCURRENT CONSUMPTION
dc.subjectDATA SET
dc.subjectDECISION MAKING
dc.subjectDECREASING RATE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDIFFERENTIAL IMPACT
dc.subjectDISTRIBUTION DATA
dc.subjectECONOMIES OF SCALE
dc.subjectEMPIRICAL ANALYSIS
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL MODEL
dc.subjectEMPIRICAL RESULTS
dc.subjectENDOGENOUS VARIABLE
dc.subjectEXPECTED RETURNS
dc.subjectEXPECTED VALUE
dc.subjectEXPECTED VALUES
dc.subjectFIXED COSTS
dc.subjectFIXED INPUTS
dc.subjectHISTORICAL DATA
dc.subjectHOUSEHOLD CHARACTERISTICS
dc.subjectHOUSEHOLD COMPOSITION
dc.subjectHOUSEHOLD SURVEY
dc.subjectHOUSEHOLDS
dc.subjectIMPERFECT CREDIT
dc.subjectINCOME
dc.subjectINCOME PROCESS
dc.subjectINCOME SHOCKS
dc.subjectINCREASING FUNCTION
dc.subjectINEFFICIENCY
dc.subjectINFLATION
dc.subjectINFORMAL INSURANCE
dc.subjectINSURANCE
dc.subjectINSURANCE MARKETS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERTEMPORAL CONSUMPTION
dc.subjectLABOR MARKET
dc.subjectLEVELS OF CONSUMPTION
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINT
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOW INFLATION
dc.subjectMARGINAL PRODUCTIVITY
dc.subjectMARGINAL UTILITY
dc.subjectMARGINAL UTILITY OF CONSUMPTION
dc.subjectMARGINAL VALUE
dc.subjectNATURAL LOGARITHM
dc.subjectNEGATIVE SHOCKS
dc.subjectOPTIMIZATION
dc.subjectPERMANENT INCOME
dc.subjectPOLICY RESEARCH
dc.subjectPORTFOLIOS
dc.subjectPRICE CHANGES
dc.subjectPRICE FIXING
dc.subjectPRICE RISK
dc.subjectPRODUCT MARKETS
dc.subjectPRODUCTION FUNCTION
dc.subjectPROFITABILITY
dc.subjectPURCHASE PRICE
dc.subjectRATIONAL EXPECTATIONS
dc.subjectRISK AVERSE
dc.subjectRISK AVERSION
dc.subjectRISK TAKING
dc.subjectSAVINGS
dc.subjectSIGNIFICANT IMPACT
dc.subjectSUNK COSTS
dc.subjectTRANSACTIONS COSTS
dc.subjectUTILITY FUNCTION
dc.subjectWEALTH
dc.titleConsumption Risk, Technology Adoption, and Poverty Traps : Evidence from Ethiopiaen
dspace.entity.typePublication
okr.crossref.titleConsumption Risk, Technology Adoption, And Poverty Traps : Evidence From Ethiopia
okr.date.doiregistration2025-04-10T10:12:33.431832Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/06/7726736/consumption-risk-technology-adoption-poverty-traps-evidence-ethiopia
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.guid703071468256451288
okr.identifier.doi10.1596/1813-9450-4257
okr.identifier.externaldocumentum000016406_20070615145611
okr.identifier.internaldocumentum7726736
okr.identifier.reportWPS4257
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/06/15/000016406_20070615145611/Rendered/PDF/wps4257.pdfen
okr.region.administrativeAfrica
okr.region.countryEthiopia
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Financial Intermediation
okr.topicInsurance and Risk Mitigation
okr.topicMacroeconomics and Economic Growth::Consumption
okr.topicPoverty Reduction::Inequality
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationedddec25-fd05-5c5a-b900-c6e67e3312a4
relation.isAuthorOfPublication.latestForDiscoveryedddec25-fd05-5c5a-b900-c6e67e3312a4
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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