Households are exposed to a wide array of risks, characterized by a known or unknown probability distribution of events. Disasters are one of these risks at the extreme…
Households are exposed to a wide array of risks, characterized by a known or unknown probability distribution of events. Disasters are one of these risks at the extreme end. Understanding the nature of these risks is critical to recommending appropriate mitigation measures. A household’s resilience in resisting the negative outcomes of these risky events is indicative of its level of vulnerability. Vulnerability has emerged as the most critical concept in disaster studies, with several attempts at defining, measuring, indexing and modeling it. The paper presents the concept and meanings of risk and vulnerability as they have evolved in different disciplines. Building on these basic concepts, the paper suggests that assets are the key to reducing risk and vulnerability. Households resist and cope with adverse consequences of disasters and other risks through the assets that they can mobilize in face of shocks. Asustainable strategy for disaster reduction must therefore focus on asset‐building. There could be different types of assets, and their selection and application for disaster risk management is necessarily a contextual exercise. The mix of asset‐building strategies could vary from one community to another, depending upon households’ asset profile. The paper addresses the dynamics of assets‐risk interaction, thus focusing on the role of assets in risk management.
Evidence from developed countries shows debt and bankruptcy to be correlated with medical expenditures. In Mexico, the formal financial sector does not lend for health…
Evidence from developed countries shows debt and bankruptcy to be correlated with medical expenditures. In Mexico, the formal financial sector does not lend for health needs. So, the solution is often found by borrowing from relatives, friends, and moneylenders, or pawning belongings after using savings, if any. Despite the recent and growing literature on income and health, and health financing, we have not come across a single study analyzing pawning and health. Our study fills this gap using a sample of 400 government owned pawnshop users from Puebla, Mexico. The findings from the study revealed that health expenditures are a significant reason for pawning and having medical insurance does not reduce the probability to pawn. Also, catastrophic health expenditures are correlated with a higher probability of not redeeming the pledge. We found that most pawnshop users have low income and losing a pledge is positively correlated with low or middle income and the number of people in the household.
Evidence suggests that, in the presence of imperfect market institutions, individuals devote resources to the establishment of reliable connections to attenuate the frictions that reduce trading and insurance opportunities. In this chapter, the author surveys the relevant literature on strategic formation of networks and use it to study this particular economic situation. A simple model is built to show that the investment in strong ties often, though not always, produces stable configurations that manage to improve upon the imperfections of market institutions.
This chapter discusses the empirical application of a class of strategic network formation models, using the approach to identification introduced by de Paula, Richards-Shubik, and Tamer (2018). The author emphasizes the interplay between model specification and computational complexity, and suggests tactics to make empirically realistic models become tractable. Two detailed examples, on friendship networks and coauthorship networks, are used to illustrate these issues and to demonstrate the performance of the approach with both simulation and empirical evidence. Also, the author presents extensions to the estimation method, which expand the potential range of applications, and which provide statistical inference with minimal computational burden.
The purpose of this paper is to look forward to explore the links between projected rapid rates of agribusiness expansion and Africa's economic growth, equity and spatial…
The purpose of this paper is to look forward to explore the links between projected rapid rates of agribusiness expansion and Africa's economic growth, equity and spatial development.
The paper draws inferences from 30 years of agribusiness value chain research in Africa.
Africa's agribusinesses stand poised for exceptionally rapid growth over the coming 40 years. Because of strong interdependencies between agribusiness and agriculture, productivity growth in agribusiness systems will critically affect Africa's overall economic growth rate, its spatial development patterns and progress toward poverty reduction. But the necessary efficiency gains in agribusiness performance will not appear automatically. They will require substantial private investments, a competitive private sector and heightened public attention in areas where governments have historically proven weak: promoting regional trade, improving town and regional planning, financing scientific research, funding higher education and building commercially viable rural financial systems.
Researchers can help by assembling empirical evidence in these topic areas and by examining value chain models that stimulate private sector investment, accelerate efficiency gains and facilitate access and egress by the poor.
Drawing on 30 years of value chain research in Africa, the paper examines links between agribusiness trajectories and economic growth, equity and spatial development.