A Social Accounting Matrix for Pakistan, 2001-02: Methodology and Results

This paper describes the structure and construction of a social accounting matrix (SAM) for Pakistan for 2001-02. A SAM is an internally consistent extended set of national accounts that disaggregates value-added in each production activity into payments to various factors (e.g., land, labour, capital), and disaggregates household incomes and expenditures according to various household types. Because this Pakistan SAM is designed for analysis of the links between growth and rural poverty, agricultural activities, agricultural factors of production, and rural household accounts are more disaggregated than are those for urban activities and households. Rural household groups in the SAM are split according to three regions (Punjab, Sindh, and Other Pakistan) to capture the large differences in the structure of agricultural production and incomes across Pakistan. On average, household incomes in the SAM are 2.1 times greater than household expenditures in the HIES Survey, reflecting the apparent substantial under-reporting of expenditures (particularly on services) and informal sector incomes in the HIES and other household surveys. Agricultural factor incomes as calculated in the SAM account for only 23 percent of total factor incomes in Pakistan, but 60 percent of total factor incomes for agricultural households. 91 percent of agricultural incomes derive from land, water, own-farm labour, or livestock; earnings of hired labour and (nonlivestock) agricultural capital account for only 9 percent of agricultural incomes. Incomes of large- and medium-farm rural households, calculated using land area cultivated, data from the Agricultural Census, and other data, are significantly higher than indicated in household surveysNational accounts, Social accounting matrix

Social Accounting Matrix for Pakistan, 2001-02: Methodology and Results

This paper describes the structure and construction of a social accounting matrix (SAM) for Pakistan for 2001-02. A SAM is an internally consistent extended set of national accounts that disaggregates value-added in each production activity into payments to various factors (e.g., land, labour, capital), and disaggregates household incomes and expenditures according to various household types. Because this Pakistan SAM is designed for analysis of the links between growth and rural poverty, agricultural activities, agricultural factors of production, and rural household accounts are more disaggregated than are those for urban activities and households. Rural household groups in the SAM are split according to three regions (Punjab, Sindh, and Other Pakistan) to capture the large differences in the structure of agricultural production and incomes across Pakistan. On average, household incomes in the SAM are 2.1 times greater than household expenditures in the HIES Survey, reflecting the apparent substantial under-reporting of expenditures (particularly on services)and informal sector incomes in the HIES and other household surveys. Agricultural factor incomes as calculated in the SAM account for only 23 percent of total factor incomes in Pakistan, but 60 percent of total factor incomes for agricultural households. 91 percent of agricultural incomes derive from land, water, own-farm labour, or livestock; earnings of hired labour and (nonlivestock)agricultural capital account for only 9 percent of agricultural incomes. Incomes of large- and medium-farm rural households, calculated using land area cultivated, data from the Agricultural Census, and other data, are significantly higher than indicated in household surveys.National accounts; Social accounting matrix

Farm Household Well-Being: Comparing Consumption- and Income-Based Measures

Household economic well-being can be gauged by the financial resources (income/ wealth) available to the household or by the standard of living enjoyed by household members (consumption). Based on responses to USDA’s annual Agricultural Resource Management Survey (ARMS), a joint effort by the Economic Research Service (ERS) and the USDA National Agricultural Statistics Service, ERS has long published estimates of farm household income and wealth. This report presents, for the first time, estimates of consumption-based measures of well-being for farm households based on new questions in ARMS. The consumption measure provides a different perspective from income or wealth on farm households’ well-being relative to that of all U.S. households.household consumption, household income, household well-being measures, farm households, self-employed households, permanent income, permanent income hypothesis., Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety,

Does Agricultural Liberalization Reduce Rural Welfare in Less Developed Countries? The Case of CAFTA

Conventional economic wisdom and findings from aggregate economy-wide models suggest that removing tariffs on agricultural imports is detrimental to rural welfare in less developed countries. This paper explores the rural welfare effects of own-country agricultural liberalization under CAFTA using a disaggregated rural economy-wide model that nests within it a series of micro agricultural household models. Our simulation findings suggest that CAFTA would reduce nominal incomes for nearly all rural household groups in El Salvador, Guatemala, Honduras and Nicaragua. However, compensating variations that take into account rural economy-wide adjustments to policy shocks are mostly negative, implying that current agricultural protection policies are disadvantageous for most rural household groups.International Relations/Trade,

Adjustment Capacity of Korean Farm Household

Structural adjustment is defined as the farm household’s behavior of changing its existing farm asset distribution toward more specialized or diversified directions. Farm households are classified into agricultural or non-agricultural based ones. Estimated expected income through switching regression model reveals that higher revenue is expected when adjustment paths toward more specialization and more non-agricultural based activities are chosen.trade policy reform, structural adjustment, expected income, switching regression model, farm household, Agricultural and Food Policy, Consumer/Household Economics, Research Methods/ Statistical Methods, Q100, Q180,

Gender, Social Norms and Household Production in Burkina Faso.

Empirical studies of intra-household allocation has revealed that, in many instances, gender is an important determinant in the allocation of resources within the household. Yet, within the theoretical literature, why gender matters within the household remains an open question. In this paper, we propose a simple model of intra-household allocation based on a particular social institution for the organisation of agricultural production practised among certain ethnic groups in West Africa. We highlight how this institution, while resolving certain problems of commitment and informational asymmetry, can also lead to a gendered pattern in the allocation of productive resources and consumption within the household. Using a survey of agricultural households in Burkina Faso, we show, consistent with this theory, that plots owned by the head of the household are farmed more intensively, and achieves higher yields, than plots with similar characteristics owned by other household members. Male and female family members who do not head the household achieve similar yields. We argue that the higher yields achieved by the household head may be explained in terms of social norms that require him to spend the earnings from some plots under his control exclusively on household public goods, which in turn provides other family members the incentive to voluntarily contribute labour on his farms. Using expenditures data, and measures of rainfall to capture weather-related shocks to agricultural income, we show that the household head has, indeed, a higher marginal propensity to spend on household public goods than other household members. The fact that the head of the household is usually male accounts for the gendered pattern in labour allocation and yields across different farm plots.

Agricultural Productivity, Rural Poverty and Nutritional Security: A Micro Evidence of Inter-Linkages from Karnataka State

The inter-linkages amongst agricultural productivity, rural poverty and nutritional security have been analysed based on a study of Bagalkot district of Karnataka state using primary data for the agricultural year 2005-06 obtained from 120 farm households. The data have been processed using ratios, frequencies, percentages, regression analysis and probit model. Agricultural productivity has negatively and significantly influenced rural poverty at the farm level. Low agricultural productivity is the root cause of rural poverty. Household size and number of dependents therein have positively influenced rural poverty. Optimization of household size or increase in the number of earning members of the household would reduce poverty. Nutritional security is greatly influenced by the level of rural poverty. To upgrade the nutritional status of households, the study has suggested that effective poverty alleviation programmes aimed at enhancing agricultural productivity through transfer of productive assets instead of consumer goods to the poor, should be launched and effectively monitored. Agricultural credit being an important aspect of productivity, appropriate steps should be taken to increase the access of rural households to financial institutions.Agricultural and Food Policy,

Agricultural Household-Firm Units: Adjustments to Change

This paper assesses agricultural household-firm unit models to determine a useful typology for agricultural policy assessment that draws upon their use. Both standard and bargaining models for analyzing household decisions, including production, consumption, labor, credit, fertility and child schooling, intergenerational transfer, among other key behaviors of households are discussed, as well as data and estimation issues often encountered with household models. Relevant dimensions of a country or region typology are then suggested, focusing on (1) the extent to which markets, particularly labor markets, are perfect, missing or mixed; (2) relevant intra-household and key demographic considerations; and (3) the differentiation of particular household-firm units that are particularly disadvantaged and may be of the most critical policy concern.agricultural households, farm households, labor, labor adjustments, off-farm employment, Consumer/Household Economics, Labor and Human Capital,

Decentralization, agricultural services and determinants of input use in Nigeria:

Decentralization, agricultural services, Input use, household survey data, agricultural services, poor farmers, fertilizer use, government, modern inputs, unobserved heterogeneity,