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Wealth Accumulation and Activity Choice Evolution Among Amazonian Forest Peasant Households

Author

Listed:
  • Yoshito Takasaki
  • BRADFORD L. BARHAM
  • Oliver T. Coomes
Abstract
This paper examines investment and livelihood decisions among forest peasant households in the Amazonian floodplain. A dynamic household model of multiple asset accumulation and activity choice under risk and credit constraints is developed by incorporating natural resource use and human capital evolution. Asset portfolios and sectoral incomes are estimated and then simulated to investigate the endowment and lifecycle dependency as well as the convergence/divergence of asset accumulation and corresponding activity choices. Physical asset endowment (especially land) and different human capital evolutions across activities help to explain forest peasants' livelihood choices, distinctive asset portfolios, and divergent income outcomes over the lifecycle.
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Suggested Citation

  • Yoshito Takasaki & BRADFORD L. BARHAM & Oliver T. Coomes, 2000. "Wealth Accumulation and Activity Choice Evolution Among Amazonian Forest Peasant Households," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 434, Wisconsin-Madison Agricultural and Applied Economics Department.
    • Handle: RePEc:wop:wisaes:434
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    File URL: http://www.aae.wisc.edu/www/pub/sps/stpap434.pdf
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    References listed on IDEAS

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    8. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2000. "Rapid Rural Appraisal in Humid Tropical Forests: An Asset Possession-Based Approach and Validation Methods for Wealth Assessment Among Forest Peasant Households," World Development, Elsevier, vol. 28(11), pages 1961-1977, November.
    9. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages 29-59, Supplemen.
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    Cited by:

    1. López-Feldman, Alejandro & Edward Taylor, J., 2009. "Labor allocation to non-timber extraction in a Mexican rainforest community," Journal of Forest Economics, Elsevier, vol. 15(3), pages 205-221, August.
    2. Fisher, Monica G. & Shively, Gerald E. & Buccola, Steven T., 2002. "An Empirical Investigation Of Activity Choice, Labor Allocation, And Forest Use In Southern Malawi," Staff Papers 28616, Purdue University, Department of Agricultural Economics.
    3. Sant'anna, André Albuquerque, 2017. "Land inequality and deforestation in the Brazilian Amazon," Environment and Development Economics, Cambridge University Press, vol. 22(1), pages 1-25, February.
    4. Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2000. "Rapid Rural Appraisal in Humid Tropical Forests: An Asset Possession-Based Approach and Validation Methods for Wealth Assessment Among Forest Peasant Households," World Development, Elsevier, vol. 28(11), pages 1961-1977, November.
    5. Lopez-Feldman, Alejandro & Taylor, J. Edward, 2006. "Labor Allocation to Non-Timber Forest Products Extraction: The Case of Lacandona Rainforest Community," Working Papers 190915, University of California, Davis, Department of Agricultural and Resource Economics.

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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