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The purpose of this paper is to evaluate the relative importance of different sources of finance for agricultural and non-agricultural investments using unique Smallholder Financial Diaries collected by Consultative Group to Assist the Poor (CGAP) in Mozambique, Pakistan and Tanzania at the individual and household level.

Following the analytical framework of variance decomposition developed in Samphantharak and Townsend (2010), this study develops a method to quantify how much each cash deficit associated to investments and expenses of interest co-move with different financing sources.

This paper finds that self-finance, rather than formal or informal finance from external providers, is the main financing source for long-term and short-term smallholder agricultural investments. Further, the paper finds that the main source of self-finance varies depending on the economic opportunities faced by smallholders, with non-agricultural income as the dominant financing source for some, while agricultural income dominating for others.

Given CGAP’s Smallholder Financial Diaries is not nationally representative, research results should be interpreted carefully. However, to the best of the authors’ knowledge, this is the first paper to analyze financing sources for smallholder households making use of high frequency financial data for individuals in developing countries.

These findings imply that financial inclusion policies specifically targeting smallholders and the agricultural sector would benefit from enabling the development of an ecosystem of diverse financial services that respond simultaneously to both agriculture and non-agriculture needs.

This is paper furthers the authors’ knowledge on how smallholder households are financing their agricultural investments. Moreover, it applies methods in new ways to exploit a unique data set.

Modern cities are divided into some essential dimensions, according to the definitions of smart cities. Smart cities follow innovation-oriented development standards. A smart city combines multiple aspects, which encourage the birth and blossoming of start-ups. The analysis of smart cities according to subjective variables puts in evidence their potential growth, as well as strengths and weaknesses. On the basis of the Eurostat (2015) survey, the present chapter creates a DP₂ index that singles out the most attractive cities for business activities.

Sustainable development calls for concerted efforts towards building an inclusive, sustainable and resilient future for people and planet. The approach that considers sustainable development as the fight against poverty, through the promotion of a sustainable and equitable economy, as the attempt to reduce polluting emissions to promote environmental protection and as the satisfaction of social goals to increase the well-being of populations is adopted. Sustainability development is therefore a complex and subjective concept, considering the three dimensions that define the phenomenon: economic, environmental and social.

The authors have chosen subjective variables, which provide information on the perception of the ‘sustainable development’ in the European countries. Data come from the database of ‘Eurofound’, the European Foundation for the Improvement of Living and Working Conditions. The authors applied a formative measurement model, according to which indicators are considered as the cause of the phenomenon analysed, unlike with the reflective model. To conduct the quantitative analysis, the authors have adopted a non-compensatory approach: Mazziotta and Pareto index which summarising a set of individual indicators that are assumed to be not fully substitutable. The authors place at the centre of the analysis, variables deriving from the perceptive state of the different European populations, offering new hints to measure sustainable development on the basis of subjective assumptions.