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Wealth Accumulation And Activity Choice Evolution Among Amazonian Forest Peasant Households

Author

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  • Takasaki, Yoshito
  • Barham, Bradford L.
  • Coomes, Oliver T.
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.

Suggested Citation

  • Takasaki, Yoshito & Barham, Bradford L. & Coomes, Oliver T., 2000. "Wealth Accumulation And Activity Choice Evolution Among Amazonian Forest Peasant Households," Staff Papers 12653, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12653
    DOI: 10.22004/ag.econ.12653
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    References listed on IDEAS

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    1. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-750, July.
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    3. Baland, Jean-Marie & Platteau, Jean-Philippe, 2000. "Halting Degradation of Natural Resources: Is There a Role for Rural Communities?," OUP Catalogue, Oxford University Press, number 9780198290612.
    4. Dercon, Stefan, 1998. "Wealth, risk and activity choice: cattle in Western Tanzania," Journal of Development Economics, Elsevier, vol. 55(1), pages 1-42, February.
    5. Barham, Bradford & Carter, Michael R. & Sigelko, Wayne, 1995. "Agro-export production and peasant land access: Examining the dynamic between adoption and accumulation," Journal of Development Economics, Elsevier, vol. 46(1), pages 85-107, February.
    6. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    7. Barrett, Christopher B., 1999. "Stochastic food prices and slash-and-burn agriculture," Environment and Development Economics, Cambridge University Press, vol. 4(2), pages 161-176, May.
    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.

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    More about this item

    Keywords

    Consumer/Household Economics;

    JEL classification:

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

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