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1 – 3 of 3The purpose of this paper is to investigate why poor people make decisions that at first sight appear irrational. The author stays within the realms of classical consumption…
Abstract
Purpose
The purpose of this paper is to investigate why poor people make decisions that at first sight appear irrational. The author stays within the realms of classical consumption theory, and investigates preference-based explanations. The author studies the case of rickshaw rental versus purchase. One-year rent is sufficient to buy a rickshaw in the plains of Nepal, while a rickshaw will last many years, so purchase appears very profitable. Still most cyclists rent the rickshaw.
Design/methodology/approach
Based on choices made by rickshaw cyclists between hypothetical financing schemes for rickshaws we investigate whether the explanation is a high time-preference rate or a high elasticity of the marginal utility of consumption, which in turn can be explained by preferences that are formed by consumption near a subsistence level.
Findings
The authors find that subsistence constraints are more important than high time-preference rates. In short, many rickshaw cyclists switch from profitable investment decisions to myopic choices if the weekly payments are too high.
Research limitations/implications
In contrast to standard bidding-forms, the methodology does not allow for exact estimates of the implied time-preference rate or the elasticity of the marginal utility of consumption.
Practical implications
Microcredit has no role if people are subsistence constraint, as they will need to save every day also to repay loans.
Social implications
The findings indicate that myopic choices by poor people are not due to myopic preferences, but rather that the disutility of reducing consumption today is too high.
Originality/value
The authors believe bidding-forms are too complex for field experiments among people with no, or minimal, education. The simple hypothetical choices we have constructed appear to work.
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Samia Satti Osman Mohamed Nour and Eltayeb Mohamedain Abdalla
Different from the previous studies in the Sudanese literature, this study aims to examine the incidence and of food security, the variation in households' food insecurity between…
Abstract
Purpose
Different from the previous studies in the Sudanese literature, this study aims to examine the incidence and of food security, the variation in households' food insecurity between localities and the adaptation and survival strategy in Kassala State as a case study of Eastern Sudan.
Design/methodology/approach
This paper uses the measurement of Household Food Insecurity Access Scale (HFIAS) and uses new primary data from a Food Security Household Survey in Kassala State (2019) and uses the descriptive analysis to discuss the measurement of HFIAS, the incidence of food security, the variation in households' food insecurity between localities and the adaptation and survival strategy in Kassala State.
Findings
The authors find that the majority of household (77%) are food-insecure of various degrees, with 32.9% being severely food-insecure, while some households are food-secure (23%). The authors find support for their hypothesis that there will be variation in households' food insecurity between localities that most probably relate to variation in the distribution of monthly income between localities. In particular, the authors find that most households in rural areas are severely food-insecure.
Originality/value
This paper provides a significant contribution to the Sudanese and international literature because it discusses the incidence of food insecurity in Sudan. Different from the two other accompanying papers that focused on the determinants of food security in Kassala State using the measurement of HFIAS and determinants of production of food and consumption of food in Kassala State, this paper focuses on the incidence of food security in Kassala State using the measurement of HFIAS.
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Samia Satti Osman Mohamed Nour and Eltayeb Mohamedain Abdalla
This paper aims to discuss the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS). We use the measurement of…
Abstract
Purpose
This paper aims to discuss the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS). We use the measurement of HFIAS and use new primary data from a food security household survey in Kassala state (2019).
Design/methodology/approach
This paper focuses on the determinants of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS), using new primary data from a food security household survey in Kassala state (2019) and using the multinomial logistic regression analysis and both ordered logit and ordered probit regression to examine the determinants of food security.
Findings
Our results are in support of our hypothesis that the significant determinants of household food insecurity are family-owned production (that negatively affects the probabilities of household being food insecure), household income (that negatively affects HFIAS). We observe that the effects of family-owned production on household food insecurity are particularly significant in the case of mildly and moderately food insecurity. We explain that the other factors that affect the household food insecurity include improvement in the level of agricultural services, marketing, banking services and road characteristics that reduce HFIAS. We find a gender gap related to food security in the sense that male-headed households produce more food compared to female-headed households and also families headed by males are more likely food secure. Therefore, the major policy implication from our results is the importance of increasing households income and enhancing family own production of food to eliminate food insecurity.
Originality/value
This paper provides a significant contribution to the Sudanese and international literature because it discusses the determinants of food security in Kassala state. Different from the two other accompanying papers that focused on the incidence of food security in Kassala state using the measurement of Household Food Insecurity Access Scale (HFIAS) and the determinants of production of food and consumption of food in Kassala state, this paper focuses on the determinants of food security in Kassala state using the measurement of HFIAS and using new primary data from a food security household survey in Kassala state (2019). We fill the gap in the Sudanese literature because we provide a more interesting analysis of the determinants of food security in Kassala state. Our analysis is useful from policy perspective since we provide useful policy recommendations to enhance food security through agricultural development in Kassala state.
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