This paper presents a simple model of an Ethiopian farn household which captures three important aspects of the policy regime characterising the Derg period. These aspects are compulsory grain delivery, rationing in manufactured consumer goods, and rationing in modern farn inputs. The model...

An intertemporal acreage allocation model that allows for the impact of compulsory grain delivery is developed. Subsequently, an estimable dynamic acreage demand equation is derived, and estimated for a crop using region-level data. Generalized method of moments (GMM) estimators for dynamic...

Fatalism is considered pervaisve, not leaste within many poor communities. In this paper, we explore whether 'fatalistic' beliefs have implications for the attitudes and behaviour of poor rural households towards investment in the future. We first explore the idea of fatalos, drawing inspiration...

Poor people often do not make investments, even when returns are high. One possible explanation is that they have low aspirations and form mental models which ignore some options for investment. This paper reports on findings of an innovative experiment to test this in rural Ethiopia. Firstly,...

Although cultural practices often have important consequences for household consumption and economic performance, they are seldom studied by economists. To fill this gap we study the impact of taboos on agriculture and poverty. Madagascar is a good case study for this purpose given the...

Following an electoral dispute, the central highlands of the island of Madagascar were subjected to an economic blockade during the Þrst half of 2002. After the blockade ended in June 2002, user fees for health services and school fees were progressively eliminated. This paper examines the...

Using original survey data, we examine how insecurity affects welfare. Correcting for unobserved heterogeneity and possible endogenecity, we find a strong effect on incomes, school enrolment and health status, but no effect on infant mortality. The effect of insecurity is robust to the inclusion...

Using detailed trader surveys in Benin, Madagascar, and Malawi, this paper investigates the presence of increasing returns in agricultural trade. After analyzing margins, cost, and value added, we find little evidence of returns to scale. Motorized transport is found more cost effective for...

This paper investigates the relationship between poverty and crime. Following a disputed presidential election, fuel supply to the highlands of Madagascar was severely curtailed in early 2002, resulting in a massive if temporary increase in poverty. Using original survey data collected in June...

This paper studies liberalized grain markets in Madagascar and examines how property rights are protected and contracts are enforced among agricultural traders. We find that the incidence of theft and breach of contract is low and that the losses resulting from such instances are small. This,...