Toward an Understanding of Household Vulnerability in Rural Kenya

Considerations of risk and vulnerability are key to understanding the dynamics of poverty. This study conceives vulnerability as expected poverty and illustrates a methodology to empirically assess household vulnerability using pseudo panel data de...

Full description

Bibliographic Details
Main Authors: Christiaensen, Luc J., Subbarao, Kalanidhi
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/06/4966376/toward-understanding-household-vulnerability-rural-kenya
http://hdl.handle.net/10986/14039
id okr-10986-14039
recordtype oai_dc
spelling okr-10986-140392021-04-23T14:03:21Z Toward an Understanding of Household Vulnerability in Rural Kenya Christiaensen, Luc J. Subbarao, Kalanidhi ACCOUNTING AGRICULTURE ARABLE LAND BORROWING CLIMATIC CONDITIONS CUMULATIVE DISTRIBUTION FUNCTION DEMOGRAPHICS DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES ECONOMIC GROWTH EMPIRICAL APPLICATION EMPIRICAL APPROACHES EMPIRICAL ESTIMATION EMPIRICAL LITERATURE EMPIRICAL RESEARCH EXCHANGE RATE EXPECTED UTILITY EXPENDITURES HEALTH OUTCOMES HETEROSKEDASTICITY HISTORICAL DATA HOUSEHOLD INCOME HOUSEHOLD MEMBERS HUMAN CAPITAL INCOME INCOME SHARE INCOME SHOCKS INCOME SOURCES INCREASING FUNCTION INSURANCE INSURANCE MARKETS LABOR MARKET LABOR SUPPLY LAND OWNERSHIP LIQUIDITY MARKET INTEGRATION MEAN CONSUMPTION MEASUREMENT ERROR MORAL HAZARD OBSERVED CHANGES POLICY INSTRUMENTS POLICY MAKERS POLICY PERSPECTIVE POLICY RESEARCH POVERTY GAP POVERTY INDEX POVERTY LINE POVERTY MEASURE POVERTY MEASURES POVERTY OUTCOMES PRICE FLUCTUATIONS PRIVATE SECTOR PRODUCT MARKETS PRODUCTION TECHNOLOGY PUBLIC SECTOR RAINFALL VARIABILITY REGIONAL DEFLATORS REGRESSION ANALYSIS RELATIVE IMPORTANCE RESOURCE ALLOCATION RISK AVERSION RISK MANAGEMENT RISK PREFERENCE SECONDARY SOURCES SMOOTHING CONSUMPTION TERMS OF TRADE TIME SERIES TRADE SHOCKS URBAN DWELLERS UTILITY FUNCTION WEALTH RURAL AREAS VULNERABILITY ANALYSIS POVERTY METHODOLOGY HOUSEHOLDS MALARIA INCIDENCE CATTLE FARMING GOATS LITERACY CONSUMPTION HOUSEHOLDS ARID REGIONS Considerations of risk and vulnerability are key to understanding the dynamics of poverty. This study conceives vulnerability as expected poverty and illustrates a methodology to empirically assess household vulnerability using pseudo panel data derived from repeated cross sections augmented with historical information on shocks. Application of the methodology to data from rural Kenya shows that in 1994 rural households faced on average a 40 percent chance of becoming poor in the future. Households in arid areas that experience large rainfall volatility appear more vulnerable than those in non-arid areas, where malaria emerges as a key risk factor. Idiosyncratic shocks also cause non-negligible consumption volatility. Possession of cattle and sheep/goats appears ineffective in protecting consumption against covariant shocks, though sheep/goat help reduce the effect of idiosyncratic shocks, especially in arid zones. Of the policy instruments simulated, interventions directed at reducing the incidence of malaria, promoting adult literacy, and improving market accessibility hold most promise to reduce vulnerability. 2013-06-19T20:57:56Z 2013-06-19T20:57:56Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4966376/toward-understanding-household-vulnerability-rural-kenya http://hdl.handle.net/10986/14039 English en_US Policy Research Working Paper;No.3326 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Africa Kenya
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTING
AGRICULTURE
ARABLE LAND
BORROWING
CLIMATIC CONDITIONS
CUMULATIVE DISTRIBUTION FUNCTION
DEMOGRAPHICS
DEPENDENT VARIABLE
DESCRIPTIVE STATISTICS
DEVELOPING COUNTRIES
ECONOMIC GROWTH
EMPIRICAL APPLICATION
EMPIRICAL APPROACHES
EMPIRICAL ESTIMATION
EMPIRICAL LITERATURE
EMPIRICAL RESEARCH
EXCHANGE RATE
EXPECTED UTILITY
EXPENDITURES
HEALTH OUTCOMES
HETEROSKEDASTICITY
HISTORICAL DATA
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HUMAN CAPITAL
INCOME
INCOME SHARE
INCOME SHOCKS
INCOME SOURCES
INCREASING FUNCTION
INSURANCE
INSURANCE MARKETS
LABOR MARKET
LABOR SUPPLY
LAND OWNERSHIP
LIQUIDITY
MARKET INTEGRATION
MEAN CONSUMPTION
MEASUREMENT ERROR
MORAL HAZARD
OBSERVED CHANGES
POLICY INSTRUMENTS
POLICY MAKERS
POLICY PERSPECTIVE
POLICY RESEARCH
POVERTY GAP
POVERTY INDEX
POVERTY LINE
POVERTY MEASURE
POVERTY MEASURES
POVERTY OUTCOMES
PRICE FLUCTUATIONS
PRIVATE SECTOR
PRODUCT MARKETS
PRODUCTION TECHNOLOGY
PUBLIC SECTOR
RAINFALL VARIABILITY
REGIONAL DEFLATORS
REGRESSION ANALYSIS
RELATIVE IMPORTANCE
RESOURCE ALLOCATION
RISK AVERSION
RISK MANAGEMENT
RISK PREFERENCE
SECONDARY SOURCES
SMOOTHING CONSUMPTION
TERMS OF TRADE
TIME SERIES
TRADE SHOCKS
URBAN DWELLERS
UTILITY FUNCTION
WEALTH RURAL AREAS
VULNERABILITY ANALYSIS
POVERTY
METHODOLOGY
HOUSEHOLDS
MALARIA INCIDENCE
CATTLE FARMING
GOATS
LITERACY
CONSUMPTION
HOUSEHOLDS
ARID REGIONS
spellingShingle ACCOUNTING
AGRICULTURE
ARABLE LAND
BORROWING
CLIMATIC CONDITIONS
CUMULATIVE DISTRIBUTION FUNCTION
DEMOGRAPHICS
DEPENDENT VARIABLE
DESCRIPTIVE STATISTICS
DEVELOPING COUNTRIES
ECONOMIC GROWTH
EMPIRICAL APPLICATION
EMPIRICAL APPROACHES
EMPIRICAL ESTIMATION
EMPIRICAL LITERATURE
EMPIRICAL RESEARCH
EXCHANGE RATE
EXPECTED UTILITY
EXPENDITURES
HEALTH OUTCOMES
HETEROSKEDASTICITY
HISTORICAL DATA
HOUSEHOLD INCOME
HOUSEHOLD MEMBERS
HUMAN CAPITAL
INCOME
INCOME SHARE
INCOME SHOCKS
INCOME SOURCES
INCREASING FUNCTION
INSURANCE
INSURANCE MARKETS
LABOR MARKET
LABOR SUPPLY
LAND OWNERSHIP
LIQUIDITY
MARKET INTEGRATION
MEAN CONSUMPTION
MEASUREMENT ERROR
MORAL HAZARD
OBSERVED CHANGES
POLICY INSTRUMENTS
POLICY MAKERS
POLICY PERSPECTIVE
POLICY RESEARCH
POVERTY GAP
POVERTY INDEX
POVERTY LINE
POVERTY MEASURE
POVERTY MEASURES
POVERTY OUTCOMES
PRICE FLUCTUATIONS
PRIVATE SECTOR
PRODUCT MARKETS
PRODUCTION TECHNOLOGY
PUBLIC SECTOR
RAINFALL VARIABILITY
REGIONAL DEFLATORS
REGRESSION ANALYSIS
RELATIVE IMPORTANCE
RESOURCE ALLOCATION
RISK AVERSION
RISK MANAGEMENT
RISK PREFERENCE
SECONDARY SOURCES
SMOOTHING CONSUMPTION
TERMS OF TRADE
TIME SERIES
TRADE SHOCKS
URBAN DWELLERS
UTILITY FUNCTION
WEALTH RURAL AREAS
VULNERABILITY ANALYSIS
POVERTY
METHODOLOGY
HOUSEHOLDS
MALARIA INCIDENCE
CATTLE FARMING
GOATS
LITERACY
CONSUMPTION
HOUSEHOLDS
ARID REGIONS
Christiaensen, Luc J.
Subbarao, Kalanidhi
Toward an Understanding of Household Vulnerability in Rural Kenya
geographic_facet Africa
Kenya
relation Policy Research Working Paper;No.3326
description Considerations of risk and vulnerability are key to understanding the dynamics of poverty. This study conceives vulnerability as expected poverty and illustrates a methodology to empirically assess household vulnerability using pseudo panel data derived from repeated cross sections augmented with historical information on shocks. Application of the methodology to data from rural Kenya shows that in 1994 rural households faced on average a 40 percent chance of becoming poor in the future. Households in arid areas that experience large rainfall volatility appear more vulnerable than those in non-arid areas, where malaria emerges as a key risk factor. Idiosyncratic shocks also cause non-negligible consumption volatility. Possession of cattle and sheep/goats appears ineffective in protecting consumption against covariant shocks, though sheep/goat help reduce the effect of idiosyncratic shocks, especially in arid zones. Of the policy instruments simulated, interventions directed at reducing the incidence of malaria, promoting adult literacy, and improving market accessibility hold most promise to reduce vulnerability.
format Publications & Research :: Policy Research Working Paper
author Christiaensen, Luc J.
Subbarao, Kalanidhi
author_facet Christiaensen, Luc J.
Subbarao, Kalanidhi
author_sort Christiaensen, Luc J.
title Toward an Understanding of Household Vulnerability in Rural Kenya
title_short Toward an Understanding of Household Vulnerability in Rural Kenya
title_full Toward an Understanding of Household Vulnerability in Rural Kenya
title_fullStr Toward an Understanding of Household Vulnerability in Rural Kenya
title_full_unstemmed Toward an Understanding of Household Vulnerability in Rural Kenya
title_sort toward an understanding of household vulnerability in rural kenya
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/06/4966376/toward-understanding-household-vulnerability-rural-kenya
http://hdl.handle.net/10986/14039
_version_ 1764430399947145216