ACTIVITY PORTFOLIOS IN RURAL ETHIOPIA: CHOICES AND CONSTRAINTS
No hay miniatura disponible
Fecha
Autores
Título de la revista
ISSN de la revista
Título del volumen
Editor
Resumen
Descripción
Peasant households, especially African rural households, can hold very diversified portfolios of economic activities. Portfolio diversification is often seen as a risk-reducing mechanism and linked with lowering risk at the cost of a lower income. A simple theoretical model of activity choice reveals that factors other than risk might influence the desire to diversity. In addition, binding entry-constraints might exist for certain off-farm activities. An empirical analysis of Ethiopian rural households suggests that entry-constraints are important in explaining portfolio and that diversification can actually result in increasing income.