Consumption Vulnerability to Risk in Rural Pakistan

• Kurosaki, Takashi

  Hitotsubashi University

Abstract

As one of the dimensions of vulnerability, this paper empirically investigates the inability of rural dwellers to cope with negative income shocks. A variable coefficient regression model is applied to a twoperiod household panel dataset collected in the NorthWest Frontier Province, Pakistan, an area with high incidence of income poverty and low human development. The empirical model allows for a different abilityto smooth consumption, approximated by a linear function of households’ attributes, and controls for the endogeneity of observed changes in income, using qualitative information on subjective risk assessment. Estimation results show that the ability to cope with negative income shocks is lower for households that are aged, landless and do not receive remittances regularly.

Journal

• Journal of Development Studies

  Journal of Development Studies 42 (1), 70-89, 2006-01

  Taylor & Francis

Keywords

• consumption smoothing
• vulnerability
• poverty
• risk
• human capital

Details

• CRID: 1050568617200583936
• NII Article ID: 120000819205
• NII Book ID: AA00241556
• ISSN: 00220388
• HANDLE: 10086/13942
• Text Lang: en
• Article Type: journal article
• Data Source:
  • IRDB
  • CiNii Articles
  • KAKEN