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This book investigates savings and risk-coping
behavior of rural households in developing
countries, particularly focusing on portfolio choice
and activity choice made by households. The
relationship between anti-poverty interventions and
risk is also examined. The book first focuses on the
role of portfolio adjustment for households in
mitigating crop-income shocks, drawing upon monthly
and seasonal data constructed from the ICRISAT data
in India. We confirm that households use crop
inventory, currency and capital assets as buffer
stock against transitory income shocks. Secondly, we
investigate the extent to which public and market
employment serve as an income stabilising role in
India. We then statistically show that the
Employment Guarantee Scheme has both promotional
effects, the effects of helping the poor escape from
poverty, and promotional effects, the effects of
preventing the non-poor escaping from poverty. The
final chapter scrutinises the role of livestock as
liquid assets in rural Kenya. We show that many
rural households are currently liquidity-constrained
and liquidity constraints are closely associated
with cattle-holding.
behavior of rural households in developing
countries, particularly focusing on portfolio choice
and activity choice made by households. The
relationship between anti-poverty interventions and
risk is also examined. The book first focuses on the
role of portfolio adjustment for households in
mitigating crop-income shocks, drawing upon monthly
and seasonal data constructed from the ICRISAT data
in India. We confirm that households use crop
inventory, currency and capital assets as buffer
stock against transitory income shocks. Secondly, we
investigate the extent to which public and market
employment serve as an income stabilising role in
India. We then statistically show that the
Employment Guarantee Scheme has both promotional
effects, the effects of helping the poor escape from
poverty, and promotional effects, the effects of
preventing the non-poor escaping from poverty. The
final chapter scrutinises the role of livestock as
liquid assets in rural Kenya. We show that many
rural households are currently liquidity-constrained
and liquidity constraints are closely associated
with cattle-holding.