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• W1570693326 abstract "The present paper re-visits rural farm households’ ability to smooth consumption ex-post via savings in the form of livestock. Previous studies nd that livestock holdings in rural areas of the West African Semi-arid Tropics (WASAT) are often substantial yet there is little evidence for precautionary saving in the form of livestock out of transitory income. Exploiting two comprehensive panel datasets covering Burkina Faso’s 2004 drought, we nd that livestock sales increase signicantly in response to drought. Consistent with consumption smoothing, the motive frequently cited by households for these extra sales is the need to nance food consumption. Using deviations in rainfall to extract the transitory component of crop prot, we nd evidence that shocks are nevertheless to a large extent passed on to consumption expenditure. In line with the literature, we nd that some consumption smoothing is achieved via adjustments to grain stocks while households apparently fail to smooth consumption by adjusting livestock holdings. We argue that this seemingly contradictory nding is largely due to a decrease in relative livestock prices during droughts. This suggests that selling livestock is a costly coping strategy which may be the reason that households rely on it only to a limited extent." @default.
• W1570693326 created "2016-06-24" @default.
• W1570693326 creator A5037631263 @default.
• W1570693326 creator A5080842438 @default.
• W1570693326 date "2015-03-01" @default.
• W1570693326 modified "2023-09-27" @default.
• W1570693326 title "Livestock as an Imperfect Buffer Stock in Poorly Integrated Markets" @default.
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• W1570693326 doi "https://doi.org/10.22004/ag.econ.200327" @default.
• W1570693326 hasPublicationYear "2015" @default.
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