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Livestock holdings during and after 2011 drought in Ethiopia: Heterogeneous responses and livestock types

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  • Iritani, Satoko

Abstract

Livestock have long been considered as a buffer stock, though recent studies on asset smoothing suggest that the extent of use of livestock sale as self-insurance bifurcates between the asset rich (i.e., those with an abundance of livestock to sustain their livelihoods) and the asset poor (i.e., those without enough livestock). Using two-period panel surveys of rural Ethiopia, this paper extends the discussion of the asset dynamics bifurcation by disaggregating rainfall shocks into drought- and flood-related ones. My empirical analysis implies that the asset rich sold their small livestock in the face of below-normal rainfalls, though the asset poor did not. Faced with above-normal rainfall shocks, on the other hand, the asset poor depleted their livestock. I discuss possible explanations for these results.

Suggested Citation

  • Iritani, Satoko, 2018. "Livestock holdings during and after 2011 drought in Ethiopia: Heterogeneous responses and livestock types," MPRA Paper 86528, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:86528
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    More about this item

    Keywords

    asset dynamics; buffer stock saving; livestock; natural disaster; Ethiopia;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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