How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?

The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational choice. Estimates suggest that the entry (sunk) cost associated with moving out of subsistence can be...

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Main Authors:	Cadot, Olivier, Dutoit, Laure, Olarreaga, Marcelo
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACREAGE ADJUSTMENT ASSISTANCE AGRICULTURAL MARKETS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTS AGRICULTURAL REVENUE AGRICULTURE ORGANIZATION ARBITRAGE BALANCE SHEETS BARRIERS TO ENTRY BENCHMARK CANE SUGAR CASH CROPS CASH INCOME COMMERCIAL AGRICULTURE COMMERCIAL FARMING COMPARATIVE ADVANTAGE CONSUMER PRICES CONSUMPTION EXPENDITURES COTTON CREDIT MARKETS CROPLAND DEVELOPMENT ECONOMICS DISCOUNTED VALUE DIVERSIFICATION DIVIDENDS ECONOMIES OF SCALE EQUATIONS EXPECTED RETURN EXPENDITURE EXPENDITURES EXPORT EXPORTS EXTREME POVERTY FAIR FARM FARM OUTPUT FARM POPULATION FARM SIZE FARMER FARMERS FARMS FEMALE-HEADED HOUSEHOLDS FLAVOR FOOD CROPS GDP HOUSEHOLD HEAD HOUSEHOLD HEADS HURDLES INTENSIVE FARMING INTEREST RATE LACK OF CREDIT LAND OWNERSHIP LANDOWNER LDCS LIVESTOCK LIVESTOCK SALES MARKET DISRUPTION MARKET ENTRY MARKET ENTRY COST MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET PRICES MARKET REFORMS MARKET SECTOR MARKET STRUCTURE MARKETING MARKETING BOARDS MIDDLEMEN MILLS MORAL HAZARD OPPORTUNITY COST OPPORTUNITY COSTS OWNERSHIP STRUCTURE POOR COUNTRIES POOR FARMERS POVERTY ALLEVIATION POVERTY LINE PRICE CHANGES PRICE INDEX PRICE INDICES PRICE VOLATILITY PRODUCER ASSOCIATION PRODUCER PRICES PRODUCT DIFFERENTIATION REAL INCOME RISK AVERSION RISK PREMIUM RURAL AREA RURAL CREDIT RURAL HOUSEHOLDS RURAL POVERTY RURAL ROADS SALE SALES SCHOOLING SHARECROPPING SUBSISTENCE SUBSISTENCE AGRICULTURE SUBSISTENCE FARMERS SUBSISTENCE FARMING SUGAR SUGAR CANE SUNK COSTS SURPLUS TRADE FLOWS TRADE REFORMS TRANSACTION VALUATION VOLATILITY THRESHOLD REGRESSION SWITCHING REGRESSION UNKNOWN SAMPLE SEPARATION ENTRY COSTS.
Online Access:	http://documents.worldbank.org/curated/en/2006/04/6710341/costly-poor-farmers-lift-out-poverty http://hdl.handle.net/10986/8733

id	okr-10986-8733
recordtype	oai_dc
spelling	okr-10986-87332021-04-23T14:02:40Z How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence? Cadot, Olivier Dutoit, Laure Olarreaga, Marcelo ACREAGE ADJUSTMENT ASSISTANCE AGRICULTURAL MARKETS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTS AGRICULTURAL REVENUE AGRICULTURE ORGANIZATION ARBITRAGE BALANCE SHEETS BARRIERS TO ENTRY BENCHMARK CANE SUGAR CASH CROPS CASH INCOME COMMERCIAL AGRICULTURE COMMERCIAL FARMING COMPARATIVE ADVANTAGE CONSUMER PRICES CONSUMPTION EXPENDITURES COTTON CREDIT MARKETS CROPLAND DEVELOPMENT ECONOMICS DISCOUNTED VALUE DIVERSIFICATION DIVIDENDS ECONOMIES OF SCALE EQUATIONS EXPECTED RETURN EXPENDITURE EXPENDITURES EXPORT EXPORTS EXTREME POVERTY FAIR FARM FARM OUTPUT FARM POPULATION FARM SIZE FARMER FARMERS FARMS FEMALE-HEADED HOUSEHOLDS FLAVOR FOOD CROPS GDP HOUSEHOLD HEAD HOUSEHOLD HEADS HURDLES INTENSIVE FARMING INTEREST RATE LACK OF CREDIT LAND OWNERSHIP LANDOWNER LDCS LIVESTOCK LIVESTOCK SALES MARKET DISRUPTION MARKET ENTRY MARKET ENTRY COST MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET PRICES MARKET REFORMS MARKET SECTOR MARKET STRUCTURE MARKETING MARKETING BOARDS MIDDLEMEN MILLS MORAL HAZARD OPPORTUNITY COST OPPORTUNITY COSTS OWNERSHIP STRUCTURE POOR COUNTRIES POOR FARMERS POVERTY ALLEVIATION POVERTY LINE PRICE CHANGES PRICE INDEX PRICE INDICES PRICE VOLATILITY PRODUCER ASSOCIATION PRODUCER PRICES PRODUCT DIFFERENTIATION REAL INCOME RISK AVERSION RISK PREMIUM RURAL AREA RURAL CREDIT RURAL HOUSEHOLDS RURAL POVERTY RURAL ROADS SALE SALES SCHOOLING SHARECROPPING SUBSISTENCE SUBSISTENCE AGRICULTURE SUBSISTENCE FARMERS SUBSISTENCE FARMING SUGAR SUGAR CANE SUNK COSTS SURPLUS TRADE FLOWS TRADE REFORMS TRANSACTION VALUATION VOLATILITY THRESHOLD REGRESSION SWITCHING REGRESSION UNKNOWN SAMPLE SEPARATION SUBSISTENCE ENTRY COSTS. The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational choice. Estimates suggest that the entry (sunk) cost associated with moving out of subsistence can be quite large - somewhere between 124 and 153 percent of a subsistence farmer's annual production. Our results make it possible to identify farm characteristics likely to generate large gains, if moved out of subsistence, yielding useful information for the targeting of trade-adjustment assistance programs. 2012-06-21T21:34:09Z 2012-06-21T21:34:09Z 2006-04 http://documents.worldbank.org/curated/en/2006/04/6710341/costly-poor-farmers-lift-out-poverty http://hdl.handle.net/10986/8733 English Policy Research Working Paper; No. 3881 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 Africa Madagascar
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACREAGE ADJUSTMENT ASSISTANCE AGRICULTURAL MARKETS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTS AGRICULTURAL REVENUE AGRICULTURE ORGANIZATION ARBITRAGE BALANCE SHEETS BARRIERS TO ENTRY BENCHMARK CANE SUGAR CASH CROPS CASH INCOME COMMERCIAL AGRICULTURE COMMERCIAL FARMING COMPARATIVE ADVANTAGE CONSUMER PRICES CONSUMPTION EXPENDITURES COTTON CREDIT MARKETS CROPLAND DEVELOPMENT ECONOMICS DISCOUNTED VALUE DIVERSIFICATION DIVIDENDS ECONOMIES OF SCALE EQUATIONS EXPECTED RETURN EXPENDITURE EXPENDITURES EXPORT EXPORTS EXTREME POVERTY FAIR FARM FARM OUTPUT FARM POPULATION FARM SIZE FARMER FARMERS FARMS FEMALE-HEADED HOUSEHOLDS FLAVOR FOOD CROPS GDP HOUSEHOLD HEAD HOUSEHOLD HEADS HURDLES INTENSIVE FARMING INTEREST RATE LACK OF CREDIT LAND OWNERSHIP LANDOWNER LDCS LIVESTOCK LIVESTOCK SALES MARKET DISRUPTION MARKET ENTRY MARKET ENTRY COST MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET PRICES MARKET REFORMS MARKET SECTOR MARKET STRUCTURE MARKETING MARKETING BOARDS MIDDLEMEN MILLS MORAL HAZARD OPPORTUNITY COST OPPORTUNITY COSTS OWNERSHIP STRUCTURE POOR COUNTRIES POOR FARMERS POVERTY ALLEVIATION POVERTY LINE PRICE CHANGES PRICE INDEX PRICE INDICES PRICE VOLATILITY PRODUCER ASSOCIATION PRODUCER PRICES PRODUCT DIFFERENTIATION REAL INCOME RISK AVERSION RISK PREMIUM RURAL AREA RURAL CREDIT RURAL HOUSEHOLDS RURAL POVERTY RURAL ROADS SALE SALES SCHOOLING SHARECROPPING SUBSISTENCE SUBSISTENCE AGRICULTURE SUBSISTENCE FARMERS SUBSISTENCE FARMING SUGAR SUGAR CANE SUNK COSTS SURPLUS TRADE FLOWS TRADE REFORMS TRANSACTION VALUATION VOLATILITY THRESHOLD REGRESSION SWITCHING REGRESSION UNKNOWN SAMPLE SEPARATION SUBSISTENCE ENTRY COSTS.
spellingShingle	ACREAGE ADJUSTMENT ASSISTANCE AGRICULTURAL MARKETS AGRICULTURAL PRODUCTION AGRICULTURAL PRODUCTS AGRICULTURAL REVENUE AGRICULTURE ORGANIZATION ARBITRAGE BALANCE SHEETS BARRIERS TO ENTRY BENCHMARK CANE SUGAR CASH CROPS CASH INCOME COMMERCIAL AGRICULTURE COMMERCIAL FARMING COMPARATIVE ADVANTAGE CONSUMER PRICES CONSUMPTION EXPENDITURES COTTON CREDIT MARKETS CROPLAND DEVELOPMENT ECONOMICS DISCOUNTED VALUE DIVERSIFICATION DIVIDENDS ECONOMIES OF SCALE EQUATIONS EXPECTED RETURN EXPENDITURE EXPENDITURES EXPORT EXPORTS EXTREME POVERTY FAIR FARM FARM OUTPUT FARM POPULATION FARM SIZE FARMER FARMERS FARMS FEMALE-HEADED HOUSEHOLDS FLAVOR FOOD CROPS GDP HOUSEHOLD HEAD HOUSEHOLD HEADS HURDLES INTENSIVE FARMING INTEREST RATE LACK OF CREDIT LAND OWNERSHIP LANDOWNER LDCS LIVESTOCK LIVESTOCK SALES MARKET DISRUPTION MARKET ENTRY MARKET ENTRY COST MARKET FAILURE MARKET FAILURES MARKET PARTICIPANTS MARKET PRICES MARKET REFORMS MARKET SECTOR MARKET STRUCTURE MARKETING MARKETING BOARDS MIDDLEMEN MILLS MORAL HAZARD OPPORTUNITY COST OPPORTUNITY COSTS OWNERSHIP STRUCTURE POOR COUNTRIES POOR FARMERS POVERTY ALLEVIATION POVERTY LINE PRICE CHANGES PRICE INDEX PRICE INDICES PRICE VOLATILITY PRODUCER ASSOCIATION PRODUCER PRICES PRODUCT DIFFERENTIATION REAL INCOME RISK AVERSION RISK PREMIUM RURAL AREA RURAL CREDIT RURAL HOUSEHOLDS RURAL POVERTY RURAL ROADS SALE SALES SCHOOLING SHARECROPPING SUBSISTENCE SUBSISTENCE AGRICULTURE SUBSISTENCE FARMERS SUBSISTENCE FARMING SUGAR SUGAR CANE SUNK COSTS SURPLUS TRADE FLOWS TRADE REFORMS TRANSACTION VALUATION VOLATILITY THRESHOLD REGRESSION SWITCHING REGRESSION UNKNOWN SAMPLE SEPARATION SUBSISTENCE ENTRY COSTS. Cadot, Olivier Dutoit, Laure Olarreaga, Marcelo How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
geographic_facet	Africa Madagascar
relation	Policy Research Working Paper; No. 3881
description	The main objective of this paper is to provide estimates of the cost of moving out of subsistence for Madagascar's farmers. The analysis is based on a simple asset-return model of occupational choice. Estimates suggest that the entry (sunk) cost associated with moving out of subsistence can be quite large - somewhere between 124 and 153 percent of a subsistence farmer's annual production. Our results make it possible to identify farm characteristics likely to generate large gains, if moved out of subsistence, yielding useful information for the targeting of trade-adjustment assistance programs.
format	Publications & Research :: Policy Research Working Paper
author	Cadot, Olivier Dutoit, Laure Olarreaga, Marcelo
author_facet	Cadot, Olivier Dutoit, Laure Olarreaga, Marcelo
author_sort	Cadot, Olivier
title	How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
title_short	How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
title_full	How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
title_fullStr	How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
title_full_unstemmed	How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?
title_sort	how costly is it for poor farmers to lift themselves out of subsistence?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2006/04/6710341/costly-poor-farmers-lift-out-poverty http://hdl.handle.net/10986/8733
_version_	1764405903189082112

How Costly Is It for Poor Farmers to Lift Themselves Out of Subsistence?

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