Hoffmann, VivianChristiaensen, LucSarris, Alexander2012-06-082012-06-082007-11https://hdl.handle.net/10986/7592Studies of risk and its consequences tend to focus on one risk factor, such as a drought or an economic crisis. Yet 2003 household surveys in rural Kilimanjaro and Ruvuma, two cash-crop-growing regions in Tanzania that experienced a precipitous coffee price decline around the turn of the millennium, identified health and drought shocks as well as commodity price declines as major risk factors, suggesting the need for a comprehensive approach to analyzing household vulnerability. In fact, most coffee growers, except the smaller ones in Kilimanjaro, weathered the coffee price declines rather well, at least to the point of not being worse off than non-coffee growers. Conversely, improving health conditions and reducing the effect of droughts emerge as critical to reduce vulnerability. One-third of the rural households in Kilimanjaro experienced a drought or health shocks, resulting in an estimated 8 percent welfare loss on average, after using savings and aid. Rainfall is more reliable in Ruvuma, and drought there did not affect welfare. Surprisingly, neither did health shocks, plausibly because of lower medical expenditures given limited health care provisions.CC BY 3.0 IGOABSENTEEISMACCESS TO CAPITALACCESS TO CREDITACCESS TO IRRIGATIONACCESSIBILITYADDITIONAL INCOMEAGRICULTURAL ACTIVITIESAGRICULTURAL HOUSEHOLDSAGRICULTURE ORGANIZATIONAMOUNT OF CONTRIBUTIONSASSET HOLDINGSBANANA TREESBANANASBANKING SERVICESCALCULATIONSCASH CROPSCASH RESERVESCASH-CROPCASHEW NUTSCOFFEECOFFEE CROPCOFFEE FARMERSCOFFEE GROWERSCOFFEE GROWINGCOFFEE PRICESCOFFEE PRODUCTIONCOFFEE TREESCOMMODITIESCOMMODITYCONSUMERCONSUMPTION EXPENDITURESCONSUMPTION SMOOTHINGCOVARIATE SHOCKSCRIMECROPCROP FAILURECROPSCROWDING OUTCULTIVATED LANDCULTIVATIONDEMOGRAPHIC CHARACTERISTICSDIVERSIFICATIONDROUGHTSEARNINGSECONOMIC ACTIVITYECONOMIC CRISESECONOMIC CRISISECONOMIC DEVELOPMENTEDUCATIONAL ATTAINMENTSEFFECTS OF DROUGHTEMPLOYMENT OPPORTUNITIESETHNIC GROUPSEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL SHOCKFAMILIESFAMILY MEMBERFAOFARMFARM ENTERPRISEFARM SELF-EMPLOYMENTFARMINGFEMALE-HEADED HOUSEHOLDFEMALE-HEADED HOUSEHOLDSFOOD AIDFOOD CONSUMPTIONFOOD PRODUCTIONFORMAL CREDITFORMAL EDUCATIONFULL ACCESSGENDERHEALTH CAREHEALTH ECONOMICSHEALTH SERVICESHEALTH SPENDINGHOLISTIC APPROACHHOSPITALIZATIONHOUSEHOLD BUDGETHOUSEHOLD COMPOSITIONHOUSEHOLD CONSUMPTIONHOUSEHOLD DEMOGRAPHICSHOUSEHOLD EXPENDITURESHOUSEHOLD HEADHOUSEHOLD HEADSHOUSEHOLD SIZEHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLD VULNERABILITYHOUSEHOLD WELFAREHUMAN CAPITALINCOMEINCOME GENERATIONINCOME SHOCKINSURANCEINSURANCE MARKETSINSURANCE SCHEMESINTERNATIONAL BANKIRRIGATIONLANDHOLDING SIZELANDHOLDINGSLIFE CYCLELIVESTOCK OWNERSHIPLIVING STANDARDSLOW-INCOMELOWER INCOMESMARGINAL RATEMEDICAL EXPENSESMICRO-FINANCEMICRO-FINANCE INSTITUTIONSMORTALITYPOLITICAL ECONOMYPOORPOSSESSIONPOSSESSIONSPOVERTY ALLEVIATIONPOVERTY INCIDENCEPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRIMARY EDUCATIONPROBABILITYPRODUCTIVE CAPITALPRODUCTIVITYPROFITABILITYQUALITY OF LIFEQUESTIONNAIRERATE OF RETURNSRECEIPTREMITTANCEREMITTANCESRISK AVERSIONRISK FACTORSRISK SHARINGRURALRURAL AREASRURAL HOUSEHOLDRURAL HOUSEHOLDSRURAL POPULATIONSAFETY NETSAFETY NET PROGRAMSSALESALESSAVINGSSECONDARY EDUCATIONSELF-EMPLOYMENTSENIORSOCIAL CAPITALSOCIAL PROTECTIONSUB-SAHARAN AFRICATARGETINGTOBACCOUNEMPLOYMENTVALUE OF ASSETSVILLAGEVILLAGESWAGEWORKING AGEYIELDSWorld Bank10.1596/1813-9450-4406