Risk and Household Grain Management in Developing Countries

Datos Bibliográficos

ID9703451
AutoresAlbert Park (0009-0007-3323-120X, University of Michigan, autor de correspondencia)
Año2006
Volumen116
Número514
Páginas1088-1115
Fecha de publicación2006-10-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2006.01124.x
OpenAlexW2126299250
IdiomaEN
Citas recibidas19
Referencias citadas35

A dynamic model is presented of a household's joint production, storage, and trade decisions when facing transaction costs and risk in prices and yields. Grain management decisions balance the goals of maximising profits and reducing consumption price risk. Model solutions calibrated to Chinese data show that grain's consumption role makes it an attractive form of precautionary saving even when households have access to credit, the joint nature of production and savings decisions limits the income loss associated with risk-coping, and the desire to store grain can explain why subsistence households are frequently net purchasers but rarely net sellers of grain. Copyright 2006 The Author(s). Journal compilation Royal Economic Society 2006

Developing country · Economic growth · Economic history · Economics · Library science · Political science · Agricultural risk and resilience · Computer Science · Income, Poverty, and Inequality · Microfinance and Financial Inclusion