IDEAS home Printed from https://ideas.repec.org/a/bes/jnlbes/v15y1997i2p282-92.html
   My bibliography  Save this article

Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets

Author

Listed:
  • Behrman, Jere R
  • Foster, Andrew
  • Rosenzweig, Mark R

Abstract

A methodology is developed for examining savings behavior in rural areas of developing countries that explicitly incorporates the sequential decision process in agriculture. The approach is used to examine the relative importance of alternative forms of savings in the presence and absence of formal financial intermediaries. The authors' results, based on stage-specific panel data from Pakistan, provide evidence that the presence of financial intermediaries importantly influences the use of formal savings and transfers for income smoothing. They also find that there are significant biases in evaluations of the savings-income relationship that are inattentive to the within-year dynamics of agricultural production.

Suggested Citation

  • Behrman, Jere R & Foster, Andrew & Rosenzweig, Mark R, 1997. "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 282-292, April.
    • Handle: RePEc:bes:jnlbes:v:15:y:1997:i:2:p:282-92
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bhalla, Surjit S, 1980. "The Measurement of Permanent Income and Its Application to Savings Behavior," Journal of Political Economy, University of Chicago Press, vol. 88(4), pages 722-744, August.
    2. Behrman, Jere R. & Foster, Andrew D. & Rosenzweig, Mark R., 1997. "The dynamics of agricultural production and the calorie-income relationship: Evidence from Pakistan," Journal of Econometrics, Elsevier, vol. 77(1), pages 187-207, March.
    3. Bhalla, Surjit S, 1979. "Measurement Errors and the Permanent Income Hypothesis: Evidence from Rural India," American Economic Review, American Economic Association, vol. 69(3), pages 295-307, June.
    4. John M. Antle, 1983. "Sequential Decision Making in Production Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 282-290.
    5. Antle, John M., 1983. "Sequential Decision Making in Production Models," 1983 Annual Meeting, July 31-August 3, West Lafayette, Indiana 279107, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Alderman, Harold, 1996. "Saving and economic shocks in rural Pakistan," Journal of Development Economics, Elsevier, vol. 51(2), pages 343-365, December.
    7. Chaudhuri, S. & Paxson, C., 1993. "Consumption Smoothing and Income Seasonality in Rural India," Papers 173, Princeton, Woodrow Wilson School - Development Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hervé Stolowy & Gaetan Breton, 2000. "A Framework for the Classification of Accounts Manipulations," Working Papers hal-00597249, HAL.
    2. Alem, Yonas & Demeke, Eyoual, 2020. "The persistence of energy poverty: A dynamic probit analysis," Energy Economics, Elsevier, vol. 90(C).
    3. Benjamin, Catherine & Phimister, Euan, 2001. "Imperfection du marché du capital et investissement des exploitations agricoles," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(3), pages 357-383, septembre.
    4. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
    5. Mark Rosenzweig & Andrew D. Foster, 1996. "Financial Intermediation, Transfers and Commitment: Do Banks Crowd Out Private Insurance Arrangements in Low-Income Rural Areas?," Home Pages _079, University of Pennsylvania.
    6. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    7. Rong, Zhao, 2011. "Free riding and durable adoption: a test of color television consumption in rural China," MPRA Paper 33434, University Library of Munich, Germany.
    8. Zhao Rong & Lan Wu, 2020. "Withholding Consumption: A Free Riding Perspective on the Diffusion of Color Television in Rural China," Journal of Consumer Affairs, Wiley Blackwell, vol. 54(2), pages 489-516, June.
    9. De Janvry, Alain & Sadoulet, Elisabeth & Murgai, Rinku, 2002. "Rural development and rural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 31, pages 1593-1658, Elsevier.
    10. Alemayehu, Geda & Haile, Kebret, 2006. "Aggregate saving Behavior in Africa: a review of the Theory & the existing evidence with new empirical Results," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 12(1), pages 1-73.
    11. Dingqiang Sun & Huanguang Qiu & Junfei Bai & Haiyan Liu & Guanghua Lin & Scott Rozelle, 2013. "Liquidity Constraints and Postharvest Selling Behavior: Evidence from China's Maize Farmers," The Developing Economies, Institute of Developing Economies, vol. 51(3), pages 260-277, September.
    12. Upton, Joanna B., 2014. "Resolving the Puzzle of the Conditional Superiority of In-kind versus Cash Food Assistance: Evidence from Niger," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172942, Agricultural and Applied Economics Association.
    13. Alem, Yonas & Demeke, Eyoual, 2020. "The Persistence of Energy Poverty: A Dynamic Probit Analysis," EfD Discussion Paper 20-16, Environment for Development, University of Gothenburg.
    14. Alem, Yonas & Söderbom, Måns, 2012. "Household-Level Consumption in Urban Ethiopia: The Effects of a Large Food Price Shock," World Development, Elsevier, vol. 40(1), pages 146-162.
    15. Upton Joanna, 2018. "Working Paper 304 - The Use of Cash Versus Food Transfers in Eastern Niger," Working Paper Series 2430, African Development Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adams, Richard H., 2002. "Precautionary saving from different sources of income - evidence from rural Pakistan," Policy Research Working Paper Series 2761, The World Bank.
    2. De Janvry, Alain & Sadoulet, Elisabeth & Murgai, Rinku, 2002. "Rural development and rural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 31, pages 1593-1658, Elsevier.
    3. repec:dau:papers:123456789/4459 is not listed on IDEAS
    4. Behrman, Jere R. & Foster, Andrew D. & Rosenzweig, Mark R., 1997. "The dynamics of agricultural production and the calorie-income relationship: Evidence from Pakistan," Journal of Econometrics, Elsevier, vol. 77(1), pages 187-207, March.
    5. Trapp, James N., 1989. "The Dawning Of The Age Of Dynamic Theory: Its Implications For Agricultural Economics Research And Teaching," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 21(1), pages 1-11, July.
    6. Letort, Elodie & Carpentier, Alain, 2009. "Endogeneity of acreage choices in input allocation equations: implied problems and a solution," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49217, Agricultural and Applied Economics Association.
    7. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October.
    8. Helena Ting & Martina Bozzola & Timothy Swanson, 2020. "Evaluating the propensity to save in South Africa using weather-income relationship," CIES Research Paper series 49-2017, Centre for International Environmental Studies, The Graduate Institute.
    9. Meng, Xin, 2003. "Unemployment, consumption smoothing, and precautionary saving in urban China," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 465-485, September.
    10. Elad, Renata L. & Houston, Jack E., 1999. "Seasonal Labor Constraints And Intra-Household Dynamics In The Female Fields Of Southern Cameroon," Faculty Series 16691, University of Georgia, Department of Agricultural and Applied Economics.
    11. Jagnani, Maulik & Barrett, Christopher B. & Liu, Yanyan & You, Liangzhi, 2018. "In the Weeds: Effects of Temperature on Agricultural Input Decisions in Moderate Climates," 2018 Annual Meeting, August 5-7, Washington, D.C. 274241, Agricultural and Applied Economics Association.
    12. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
    13. Catherine Larochelle & Jeffrey Alwang, 2013. "The Role of Risk Mitigation in Production Efficiency: A Case Study of Potato Cultivation in the Bolivian Andes," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 363-381, June.
    14. B. A. Larson & H. Vroomen, 1991. "Nitrogen, Phosphorus And Land Demands At The Us Regional Level: A Primal Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 354-364, September.
    15. Antle, John M. & Goodger, William A., 1983. "Measuring Stochastic Technology: The Case Of Tulare Milk Production," Working Papers 225708, University of California, Davis, Department of Agricultural and Resource Economics.
    16. Donald F. Larson & Keijiro Otsuka & Tomoya Matsumoto & Talip Kilic, 2014. "Should African rural development strategies depend on smallholder farms? An exploration of the inverse-productivity hypothesis," Agricultural Economics, International Association of Agricultural Economists, vol. 45(3), pages 355-367, May.
    17. Kibrom A. Abay & Lina Abdelfattah & Hoda El‐Enbaby & Mai Mahmoud & Clemens Breisinger, 2022. "Plot size and sustainable input intensification in smallholder irrigated agriculture: Evidence from Egypt," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 792-810, September.
    18. Marshall, Graham R. & Jones, Randall E. & Wall, Lisa M., 1997. "Tactical Opportunities, Risk Attitude and Choice of Farming Strategy: an Application of the Distribution Method," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(4), pages 1-21.
    19. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    20. Rie Muraoka & Tomoya Matsumoto & Songqing Jin & Keijiro Otsuka, 2016. "On the Possibility of a Maize Green Revolution in the Highlands of Kenya: An Assessment of Emerging Intensive Farming Systems," Natural Resource Management and Policy, in: Keijiro Otsuka & Donald F. Larson (ed.), In Pursuit of an African Green Revolution, edition 1, chapter 0, pages 145-164, Springer.
    21. Kingwell, Ross S., 1992. "The Tactics of Dryland Farm Management given Variance in Climate and Prices," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146536, Australian Agricultural and Resource Economics Society.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bes:jnlbes:v:15:y:1997:i:2:p:282-92. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.