Household Investment under Violence - The Colombian Case
Households in rural Colombia are confronted with a variety of violent threats: attacks and displacement threats by guerrillas and paramilitaries, gang violence among drug traffickers, and high common delinquency. In this context, households have to...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/09/9828541/household-investment-under-violence-colombian-case http://hdl.handle.net/10986/6986 |
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okr-10986-69862021-04-23T14:02:32Z Household Investment under Violence - The Colombian Case Grun, Rebekka E. ACCESS TO SERVICES ACCESSIBILITY AFFILIATED ORGANIZATIONS ASSETS BANK ASSETS BANK CREDIT BANKS BASIC SERVICES BENEFICIARIES BORROWING CAPITAL ACCUMULATION CAPITAL STOCK CORPORATE FINANCE CREDIT SCORING CREDITWORTHINESS CRIME CRIMES CRIMINAL DEBT DEBTS DECISION MAKING DEPENDENT DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DRUG TRAFFICKING ECONOMETRIC ANALYSIS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC RESEARCH EDUCATION LEVEL EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT STATUS ENTREPRENEURIAL ACTIVITY EXPECTED RETURNS EXPECTED VALUE EXTERNALITIES EXTORTION FAMILIES FINANCIAL REGULATION FIXED ASSET FIXED ASSETS FIXED INVESTMENT FUTURE RESEARCH GANG GANGS GENDER HOUSEHOLD INVESTMENT HOUSEHOLDS ID INCOME INCREASING RETURNS INEQUALITY INSTITUTIONAL REFORMS INSURANCE INTERNATIONAL BANK INVESTIGATION INVESTMENT DECISIONS INVESTMENT INCENTIVES JUDGMENT JUDICIAL EFFICIENCY JUSTICE JUSTICE SYSTEM KINDS OF ASSETS KINDS OF DEBT LATIN AMERICAN LAW ENFORCEMENT LEVEL OF DEBT LOOTING MANDATE MARITAL STATUS MIDDLE EAST MORTGAGE MORTGAGES NATURAL RESOURCES NEGATIVE EQUITY NORTH AFRICA OWNERSHIP RIGHTS PACIFIC REGION PARTICULAR ASSETS POLICE POLITICAL ECONOMY PORTFOLIO PORTFOLIO COMPOSITION PORTFOLIOS POSSESSION PRODUCTIVE ASSETS PROPERTY RIGHTS REAL ESTATE REMEDIES REMEDY RISK AVERSE RISK AVERSION SALARY SAVINGS SAVINGS RATE SECURE PROPERTY RIGHTS SETTLEMENT SOCIAL EXCLUSION SOURCE OF INCOME TERRORISM THEFT VALUATION VALUATION OF ASSETS VILLAGE VIOLENCE WEALTH WELFARE SYSTEM Households in rural Colombia are confronted with a variety of violent threats: attacks and displacement threats by guerrillas and paramilitaries, gang violence among drug traffickers, and high common delinquency. In this context, households have to adjust their day-to-day decisions, including saving and portfolio choices, in order to be less vulnerable. The authors test the hypothesis that households, when confronted with exogenous violence, reduce their investment and, moreover, shift it from fixed to mobile assets, which would be safer in the case of displacement, and choose the opposite strategy under higher common delinquency associated with property crimes. Empirical evidence from a rich Colombian micro-data set strongly supports the hypothesis. The results shed new light on the economic impact of violence. The immediate reduction in capital stock might be much less severe than more permanent damage via the savings function. This has implications for the appropriate political answer to chronic violence in Colombia as well as in other areas of chronic conflict. 2012-06-04T15:38:28Z 2012-06-04T15:38:28Z 2008-09 http://documents.worldbank.org/curated/en/2008/09/9828541/household-investment-under-violence-colombian-case http://hdl.handle.net/10986/6986 English Policy Research Working Paper No. 4713 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Colombia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO SERVICES ACCESSIBILITY AFFILIATED ORGANIZATIONS ASSETS BANK ASSETS BANK CREDIT BANKS BASIC SERVICES BENEFICIARIES BORROWING CAPITAL ACCUMULATION CAPITAL STOCK CORPORATE FINANCE CREDIT SCORING CREDITWORTHINESS CRIME CRIMES CRIMINAL DEBT DEBTS DECISION MAKING DEPENDENT DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DRUG TRAFFICKING ECONOMETRIC ANALYSIS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC RESEARCH EDUCATION LEVEL EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT STATUS ENTREPRENEURIAL ACTIVITY EXPECTED RETURNS EXPECTED VALUE EXTERNALITIES EXTORTION FAMILIES FINANCIAL REGULATION FIXED ASSET FIXED ASSETS FIXED INVESTMENT FUTURE RESEARCH GANG GANGS GENDER HOUSEHOLD INVESTMENT HOUSEHOLDS ID INCOME INCREASING RETURNS INEQUALITY INSTITUTIONAL REFORMS INSURANCE INTERNATIONAL BANK INVESTIGATION INVESTMENT DECISIONS INVESTMENT INCENTIVES JUDGMENT JUDICIAL EFFICIENCY JUSTICE JUSTICE SYSTEM KINDS OF ASSETS KINDS OF DEBT LATIN AMERICAN LAW ENFORCEMENT LEVEL OF DEBT LOOTING MANDATE MARITAL STATUS MIDDLE EAST MORTGAGE MORTGAGES NATURAL RESOURCES NEGATIVE EQUITY NORTH AFRICA OWNERSHIP RIGHTS PACIFIC REGION PARTICULAR ASSETS POLICE POLITICAL ECONOMY PORTFOLIO PORTFOLIO COMPOSITION PORTFOLIOS POSSESSION PRODUCTIVE ASSETS PROPERTY RIGHTS REAL ESTATE REMEDIES REMEDY RISK AVERSE RISK AVERSION SALARY SAVINGS SAVINGS RATE SECURE PROPERTY RIGHTS SETTLEMENT SOCIAL EXCLUSION SOURCE OF INCOME TERRORISM THEFT VALUATION VALUATION OF ASSETS VILLAGE VIOLENCE WEALTH WELFARE SYSTEM |
| spellingShingle |
ACCESS TO SERVICES ACCESSIBILITY AFFILIATED ORGANIZATIONS ASSETS BANK ASSETS BANK CREDIT BANKS BASIC SERVICES BENEFICIARIES BORROWING CAPITAL ACCUMULATION CAPITAL STOCK CORPORATE FINANCE CREDIT SCORING CREDITWORTHINESS CRIME CRIMES CRIMINAL DEBT DEBTS DECISION MAKING DEPENDENT DEVELOPMENT BANK DEVELOPMENT ECONOMICS DEVELOPMENT POLICIES DRUG TRAFFICKING ECONOMETRIC ANALYSIS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC RESEARCH EDUCATION LEVEL EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT STATUS ENTREPRENEURIAL ACTIVITY EXPECTED RETURNS EXPECTED VALUE EXTERNALITIES EXTORTION FAMILIES FINANCIAL REGULATION FIXED ASSET FIXED ASSETS FIXED INVESTMENT FUTURE RESEARCH GANG GANGS GENDER HOUSEHOLD INVESTMENT HOUSEHOLDS ID INCOME INCREASING RETURNS INEQUALITY INSTITUTIONAL REFORMS INSURANCE INTERNATIONAL BANK INVESTIGATION INVESTMENT DECISIONS INVESTMENT INCENTIVES JUDGMENT JUDICIAL EFFICIENCY JUSTICE JUSTICE SYSTEM KINDS OF ASSETS KINDS OF DEBT LATIN AMERICAN LAW ENFORCEMENT LEVEL OF DEBT LOOTING MANDATE MARITAL STATUS MIDDLE EAST MORTGAGE MORTGAGES NATURAL RESOURCES NEGATIVE EQUITY NORTH AFRICA OWNERSHIP RIGHTS PACIFIC REGION PARTICULAR ASSETS POLICE POLITICAL ECONOMY PORTFOLIO PORTFOLIO COMPOSITION PORTFOLIOS POSSESSION PRODUCTIVE ASSETS PROPERTY RIGHTS REAL ESTATE REMEDIES REMEDY RISK AVERSE RISK AVERSION SALARY SAVINGS SAVINGS RATE SECURE PROPERTY RIGHTS SETTLEMENT SOCIAL EXCLUSION SOURCE OF INCOME TERRORISM THEFT VALUATION VALUATION OF ASSETS VILLAGE VIOLENCE WEALTH WELFARE SYSTEM Grun, Rebekka E. Household Investment under Violence - The Colombian Case |
| geographic_facet |
Latin America & Caribbean Colombia |
| relation |
Policy Research Working Paper No. 4713 |
| description |
Households in rural Colombia are
confronted with a variety of violent threats: attacks and
displacement threats by guerrillas and paramilitaries, gang
violence among drug traffickers, and high common
delinquency. In this context, households have to adjust
their day-to-day decisions, including saving and portfolio
choices, in order to be less vulnerable. The authors test
the hypothesis that households, when confronted with
exogenous violence, reduce their investment and, moreover,
shift it from fixed to mobile assets, which would be safer
in the case of displacement, and choose the opposite
strategy under higher common delinquency associated with
property crimes. Empirical evidence from a rich Colombian
micro-data set strongly supports the hypothesis. The results
shed new light on the economic impact of violence. The
immediate reduction in capital stock might be much less
severe than more permanent damage via the savings function.
This has implications for the appropriate political answer
to chronic violence in Colombia as well as in other areas of
chronic conflict. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Grun, Rebekka E. |
| author_facet |
Grun, Rebekka E. |
| author_sort |
Grun, Rebekka E. |
| title |
Household Investment under Violence - The Colombian Case |
| title_short |
Household Investment under Violence - The Colombian Case |
| title_full |
Household Investment under Violence - The Colombian Case |
| title_fullStr |
Household Investment under Violence - The Colombian Case |
| title_full_unstemmed |
Household Investment under Violence - The Colombian Case |
| title_sort |
household investment under violence - the colombian case |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/09/9828541/household-investment-under-violence-colombian-case http://hdl.handle.net/10986/6986 |
| _version_ |
1764401200672800768 |