Seasonality, precautionary savings and health uncertainty: Evidence from farm households in central Kenya

The high prevalence of risks in low income economies makes managing uncertainty critical for productivity and survival. This paper analyzes seasonal changes in farm households’ per capita consumption and saving in response to weather and health shocks. Using a sample of 196 households in central Kenya, it tests the notion that people save most of their transitory income, and examines their precautionary saving motives. The results show that the propensity to save out of transitory income is about a fifth of what the permanent income hypothesis postulates. The propensity to save differs by wealth, with the poor exhibiting stronger precautionary motives towards rainfall variability. But the wealth effect is weak, suggesting that the asset base is vulnerable even for the better-off. However, precautionary savings tend to increase with wealth among HIV/AIDS affected households. Since illness is associated with higher consumption, and therefore less investment, we find more volatile consumption for HIV/AIDS affected households

Determinant of smallholder farmer labor allocation decisions in Uganda:

"Although there is growing evidence of the increasing role of nonfarm activities in rural livelihoods, there is still relatively little empirical evidence regarding the factors that influence smallholder farmers to diversify into nonfarm activities. This study analyses the factors that influence household labor allocation decisions and demand for farm labor in Uganda. Data were collected from 660 households in three banana-based production zones with divergent production constraints and opportunities. The determinants of demand for hired labor were estimated with the Tobit model. Linear regression was used to estimate reduced-form equations for the time-allocation decisions of household members. Our findings show that household members respond positively to increases in wages, suggesting that they respond to economic incentives. Increased wage rates negatively affect the use of hired labor, but household size has no effect on the use of hired labor, indicating that the economic rationing of labor hiring has more to do with the market wage than family size or composition. Education and road access have positive effects on the amount of time allocated to off-farm activities. Access to off-farm opportunities, however, takes away the most productive labor from farm production. These findings suggest that investment in road infrastructure and education suited to smallholder production needs could help alleviate bottlenecks in labor markets and improve resource allocation between farm and nonfarm sectors." from authors' abstractSmallholder farmers, Labor demand, Non-farm employment, Land management,

Planning for Sectors and Projects in Developing Countries: Applications of the Semi-Input-Output Method

This article presents a special case of W. Leontiers traditional input-output techniques, viz., J. Tinbcrgen's semi-input-output method. Particularly suitable for planning purposes in developing countries with open economies, the method emphasizes the role of a country's comparative advantages for investment decisions at both the sector and project level. The similarity of semi-input-output with the Little-Mirrlees method of shadow pricing is shown. Empirical applications for Nigeria are reviewed

Labor markets and labor allocative efficiency among farm households in western Kenya

This paper evaluates how efficiently farm households allocate labor between farm and offfarm activities. It estimates farm and off-farm labor supply functions to determine the factors that influence labor allocation. Both the shadow wage and the off-farm wage rate are included as regressors in the supply functions. The study reveals that, on average, farm households are inefficient, but when linked to labor markets their productivity and internal efficiency increase. The decision to sell labor is influenced by location, and off-farm employment is difficult to find, particularly for the better educated. Interventions should aim to increase opportunities for off-farm employment for persons with skills or with higher than the basic level of education, and to reduce the cost of participating in labor markets, for example by improving rural infrastructure. Addressing failures in rural financial markets would save poor households from having to sell their labor for less than they get from their farm

Neighbourhood and school effects on educational inequalities in the transition from primary to secondary education in Amsterdam

Drawing on an advanced analysis of individual longitudinal register data of school careers of four cohorts of children in Amsterdam, this article suggests that school advice is highly differentiated between children of different migrant and socioeconomic backgrounds. Moreover, apart from these individual characteristics, we demonstrate that the socioeconomic composition of neighbourhoods and schools is important for understanding differences in school advice. The analysis shows that neighbourhood and school socioeconomic disadvantage negatively affects the school advice of children with highly educated parents, while socioeconomic advantage positively affects all children and especially children of lower- and intermediate-educated parents. The positive neighbourhood effects are, however, mediated by primary school context. We suggest that while most of the educational inequalities may be explained by individual characteristics, residential and school segregation intensify these inequalities, especially through the beneficial effects of neighbourhood and school advantage

Domain modeling and grid generation for multi-block structured grids with application to aerodynamic and hydrodynamic configurations

About five years ago, a joint development was started of a flow simulation system for engine-airframe integration studies on propeller as well as jet aircraft. The initial system was based on the Euler equations and made operational for industrial aerodynamic design work. The system consists of three major components: a domain modeller, for the graphical interactive subdivision of flow domains into an unstructured collection of blocks; a grid generator, for the graphical interactive computation of structured grids in blocks; and a flow solver, for the computation of flows on multi-block grids. The industrial partners of the collaboration and NLR have demonstrated that the domain modeller, grid generator and flow solver can be applied to simulate Euler flows around complete aircraft, including propulsion system simulation. Extension to Navier-Stokes flows is in progress. Delft Hydraulics has shown that both the domain modeller and grid generator can also be applied successfully for hydrodynamic configurations. An overview is given about the main aspects of both domain modelling and grid generation

DETERMINANTS OF RESOURCE ALLOCATION IN LOW INPUT AGRICULTURE: THE CASE OF BANANA PRODUCTION IN UGANDA

Replaced with revised version of paper 09/01/04.Crop Production/Industries,