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Livestock as Insurance and Social Status: Evidence from Reindeer Herding in Norway

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  • Anne Johannesen
  • Anders Skonhoft

Abstract

The theory of livestock as a buffer stock predicts that agropastoralists facing substantial risks typically will use liquid assets, such as livestock, for self-insurance to smooth consumption. This paper examines this hypothesis for reindeer herders in Norway where the herders, in contrast to pastoralists in, say, Sub-Saharan Africa, face well functioning credit markets. Using survey data including slaughtering responses to a hypothetical meat price increase, we test whether keeping reindeer as insurance against risks affects the slaughter response. Furthermore, we study whether status motives for keeping large herds affect the harvest response to a changing slaughter price. As a background for the empirical analysis, a stochastic bioeconomic model describing Saami reindeer herding is formulated
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  • Anne Johannesen & Anders Skonhoft, 2011. "Livestock as Insurance and Social Status: Evidence from Reindeer Herding in Norway," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(4), pages 679-694, April.
    • Handle: RePEc:kap:enreec:v:48:y:2011:i:4:p:679-694
    DOI: 10.1007/s10640-010-9421-2
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    1. Fafchamps, Marcel & Udry, Christopher & Czukas, Katherine, 1998. "Drought and saving in West Africa: are livestock a buffer stock?," Journal of Development Economics, Elsevier, vol. 55(2), pages 273-305, April.
    2. Dasgupta, Partha & Maler, Karl-Goran, 1995. "Poverty, institutions, and the environmental resource-base," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 39, pages 2371-2463, Elsevier.
    3. Fraser, Iain & Chisholm, Tony, 2000. "Conservation or cultural heritage? Cattle grazing in the Victoria Alpine National Park," Ecological Economics, Elsevier, vol. 33(1), pages 63-75, April.
    4. Anne Borge Johannesen & Anders Skonhoft, 2009. "Local Common Property Exploitation with Rewards," Land Economics, University of Wisconsin Press, vol. 85(4), pages 637-654.
    5. Sherwin Rosen, 1987. "Dynamic Animal Economics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(3), pages 547-557.
    6. Kjell Arne Brekke & Richard B. Howarth, 2002. "Status, Growth and the Environment," Books, Edward Elgar Publishing, number 2160.
    7. Fafchamps, Marcel, 1998. "The Tragedy of the Commons, Livestock Cycles and Sustainability," Journal of African Economies, Centre for the Study of African Economies, vol. 7(3), pages 384-423, October.
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    1. Cattle as self-insurance in modern economies
      by Economic Logician in Economic Logic on 2009-09-11 19:56:00

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    1. Irmelin Slettemoen Helgesen & Anne Borge Johannesen, 2023. "Climate change and reindeer herding – a bioeconomic model on the economic implications for Saami reindeer herders in Sweden and Norway," Working Paper Series 19723, Department of Economics, Norwegian University of Science and Technology.
    2. Anne Borge Johannesen & Jon Olaf Olaussen & Anders Skonhoft, 2019. "Livestock and Carnivores: Economic and Ecological Interactions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 295-317, September.

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