Title
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Variability in agricultural productivity and rural household consumption inequality : evidence from Nigeria and Uganda
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Author
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Abstract
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This paper uses multiple rounds of panel data to assess the distributional implications of the variability in agricultural productivity in Nigeria and Uganda. It uses both a conventional decomposition and a regression-based inequality decomposition approach to estimate the impact of climate-induced variability in agricultural productivity. To mitigate the endogeneity associated with unobserved time-invariant and time-variant household fixed effects, we use rainfall shocks as a proxy for estimating the exogenous variability in agricultural productivity that affects consumption. Results suggest that a 10% increase in the variability of agricultural productivity tends to decrease household consumption by 38 and 52% on average for Nigeria and Uganda, respectively. Controlling for other factors, variability in agricultural productivity contributed to between 25% and 43% of consumption inequality between 2010 and 2015 for Nigeria; and 16% and 31% of consumption inequality between 2009 and 2011 for Uganda. We also show that variability in agricultural productivity increases changes in consumption inequality over time. |
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Language
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English
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Source (journal)
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Agricultural economics. - Amsterdam
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Publication
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Hoboken
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Wiley
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2021
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ISSN
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0169-5150
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DOI
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10.1111/AGEC.12604
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Volume/pages
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52
:1
(2021)
, p. 19-36
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ISI
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000604648800001
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Full text (Publisher's DOI)
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Full text (open access)
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