Levels Of Household Wealth Research Articles

What kind of intensification? Agricultural practice, soil fertility and socioeconomic differentiation in rural Burkina Faso

In rural Burkina Faso, intensification has been an uneven process that has resulted in social costs, particularly in the form of uneven distribution of assets and disparate environmental trade‐offs. This study examines the effects of wealth status on agricultural practice and soil fertility, arguing that differences in the practices of wealthier and poorer farmers lead to differential social and environmental outcomes. Two concerns are highlighted. First is the role of poverty in environmental degradation. Much of the debate about the role of wealth and poverty in environmental outcomes in developing countries has pinpointed poverty as the main causal explanation. Using studies of agricultural practices and soil fertility from several villages in southwestern Burkina Faso, this paper will counter this dominant view by showing that wealthier farmers farm much larger areas, have fewer trees in their fields, and use higher levels of animal traction which, in turn, has led to lower levels of soil fertility. A second concern is that while poorer farmers may have agricultural practices that minimize environmental degradation, their exclusion from key institutions that provide access to resources has serious livelihood consequences and potentials for increasing socioeconomic differentiation. The agricultural practices of wealthier farmers, while not optimal environmentally, result in higher levels of household wealth. A paradox emerges that while poorer farmers are conserving environmental resources, they are doing so at the expense of economic development and well‐being.

What Drives Equity Market Non-participation?

This paper produces endogenous equity market non-participation in an economy with uninsurable labor income risk and heterogeneous skill levels. Prudence and impatience generate stationary household wealth levels that depend on income. Skill, and therefore labor income, heterogeneity leads to wealth heterogeneity, with high skill households accumulating high wealth and low skill households accumulating low wealth. A HARA class utility with subsistence consumption requirement generates decreasing RRA with respect to household wealth. Consequently, low skill households also have significantly higher local RRA. In addition low skill households have less human capital and therefore have lower diversification demand for stocks. Low wealth, high RRA and low diversification demand predicts that low skill households do not hold stocks in the face of a moderate ownership cost. In addition, the model predicts a humped lifecycle wealth accumulation pattern and a humped lifecycle stock allocation pattern. I also find that stockholders exhibit a greater aggregate willingness to supply risky capital during the expansion phase of a business cycle, despite the lower conditional equity premium.

Who's at risk? Factors associated with intimate partner violence in the Philippines

We describe the individual and household characteristics associated with intimate partner violence (IPV) in the Philippines, using data from the Cebu Longitudinal Health and Nutrition Survey (CLHNS). We also examine 56 in-depth interview transcripts to explore the context of IPV. We focus our analysis on patterns of household decision-making as a measure of the interpersonal dynamics between husbands and wives. Thirteen percent of women in our sample reported IPV. While economic factors are often implicated in the cycle of violence in households, we find employment status and relative earnings do not predict IPV. Lower levels of household wealth and urban residence are associated with a higher likelihood of IPV. Patterns of household decision-making emerge as strong predictors of violence. The greater the number of decision-making domains men dominate, the more likely they are to use IPV; however, we also find that when women dominate household decisions, they are also more likely to experience IPV. Only 6% of women reported IPV when all household decisions were made jointly compared to 25% when no decisions were made jointly.

The structure of consumer confidence and real value added growth in retailing in the Netherlands

Consumer confidence is a determinant of the willingness to buy and thus of sales in retailing. The main purpose of this study is to investigate whether the structure of consumer confidence in the period 1987-2000 differs from the 1972-87 period. The main finding is that, in the 1972-87 period saving had a precaution motive and in the 1987-2000 period saving had a transaction motive. In the 1972-87 period, the utility and ability of saving were determined by the development of household wealth; and in the 1987-2000 period, the utility and ability of saving are determined by the level of household wealth. The perceived inflation is related more strongly to the perceived development of the general economic situation in the 1972-87 than in the 1987-2000 period. Empirical evidence is found that consumer confidence also influences real sales of retailers.

On the Concavity of the Consumption Function

At least since Keynes (1935), many economists have had the intuition that the marginal propensity to consume out of wealth declines as wealth increases. Nonetheless, standard perfect-certainty and certainty equivalent versions of intertemporal optimizing models of consumption imply a marginal propensity to consume that is unrelated to the level of household wealth. We show that adding income uncertainty to the standard optimization problem induces a concave consumption function in which, as Keynes suggested, the marginal propensity to consume out of wealth or transitory income declines with the level of wealth.

Debt, Investment, Slaves: Credit Relations in East Feliciana Parish, Louisiana, 1825-1885

Richard Kilbourne has produced a comprehensive study of the credit system in one Louisiana parish in the antebellum and postbellum periods of the Civil War. East Feliciana Parish was important in terms of both population and the large number of slaves. This book's primary concern is the role of slave property in collateralizing credit relationships and planter perceptions regarding slaves as financial assets. A thorough survey of parish mortgage records and other manuscript collections led to the conclusion that most credit relationships, collateralized and uncollateralized, were grounded in slave property as opposed to land or other forms of wealth. Uncollateralized debt was directly dependent on the relative wealth of parish residents, and the bulk of most portfolios consisted of slaves. Emancipation and the Civil War occasioned a monumental credit implosion from which the local economy never recovered, at least for the remainder of the 19th century. Kilbourne makes an extensive examination of postwar debt distress and the evolution of sharecropping and tenancy. Even the wealthiest households were in the throes of debt distress as was evidenced by the numerous suits brought by wives for separations of property. A peculiar recording requirement for crop privileges and pledges in the years from 1870 to 1880 made it possible to determine the amount of credit available in the postwar decades. Kilbourne shows that credit facilities contracted by 90 percent in the two decades following the Civil War. The decline in credit facilities parallels the decline in household wealth levels. Kilbourne disagrees with earlier scholars on the role of furnishing merchants in shaping the postbellumagricultural order. Furnishing merchants did become relatively more important in financing agriculture in the postwar decade, but they were not the successors of antebellum firms. Local merchants actually provided less credit than they had furnished before the Civil War to small cotton

The Impact of Family Size on Wealth Accumulation in Rural Thailand

An analysis of survey and focus-group data collected in 1988 in two rural sites in Thailand indicates that couples with few children are better able to accumulate wealth than those with larger numbers of children. The study is based on partly matched samples of couples in intact marriages who began their childbearing during the 1960s or early 1970s. Family size is inversely related to accumulated wealth, as measured by consumer goods acquired, savings and quality of housing. These associations persist after other important determinants of the household's wealth level, including the couple's economic status during the early stages of the family-building process, have been controlled. Couples' perceptions of the impact of family size on their economic welfare largely agree with the objective findings from the survey analysis.