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Title:The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique PDF Logo
Authors:Brück, Tilman
Issue Date:2004
Series/Report no.:DIW-Diskussionspapiere 413
Abstract:This paper analyses the effects of activity choices on farm household income and consumption in a war-affected developing country. The study uses household survey data from Mozambique and controls for the endogeneity of activity choices with instrumental variables. War-time activity choices (such as subsistence farming) are shown to enhance welfare in the post-war period. Market and social exchange induce only limited welfare gains. Cotton adoption reduces household welfare, which contradicts previous studies not controlling for endogenous activity choices. The study thus demonstrates how standard predictions of economics may become invalid in post-war economies. Furthermore, the paper identifies pro-poor reconstruction policies.
Subjects:poverty
farm households
activity choices
rural development
war
reconstruction
JEL:O13
I31
Q12
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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