Food price surges and poverty in urban Colombia: New evidence from household survey data

The present study simulates the impacts of price surges in 2006–2008 on poverty in the main Colombian cities drawing upon household survey data. It is found that the price surges increased both extreme and moderate poverty in urban areas, but the magnitude of poverty rise was not homogeneous across geographical locations or in terms of household characteristics, such as, education or gender of the household head. As a policy option we suggest “geographical targeting” or “demographic targeting” that will select and support poor households by locations or socio-demographic characteristics guided by the degree of household vulnerability to food price shocks.     

The impact of maize price shocks on household food security: Panel evidence from Tanzania

Using three waves (2008/09, 2010/11, 2012/13) of the Tanzanian National Panel Survey, this study investigates the impact of maize price shocks on household food security. Between 2008/09 and 2012/13, calorie intake stagnated for urban households, yet sharply deteriorated for rural households. The latter was driven by a significant decline in the consumption of the major staple maize which showed strongest price hikes among all major food items. Fixed-effects regressions indicate a clear negative relationship between maize prices and average household energy intake. Almost all population groups were found to be negatively affected by maize price shocks, with rural landless households being the most vulnerable group. In particular, a 50 percent rise in maize prices decreases caloric intake for rural (urban) households on average by 4.4 (5.4) percent, and for rural landless households by 12.6 percent. Results further indicate that subsistence agriculture can act as an effective strategy to insure against food price volatility.     

Decomposing response error in food consumption measurement: Implications for survey design from a randomized survey experiment in Tanzania

There is wide variation in how consumption is measured in household surveys, both across countries and over time. This variation may confound welfare comparisons in part because these alternative survey designs produce consumption estimates differentially influenced by contrasting types of survey response error. While previous studies have documented the extent of net error in alternative survey designs, little is known about the relative influence of the different response errors that underpin a survey estimate. This study leverages a recent randomized food consumption survey experiment in Tanzania to shed light on the relative influence of these various error types. The observed deviation of measured household consumption from a benchmark is decomposed into item-specific consumption incidence and consumption value so as to investigate effects related to (a) the omission of any consumption and then (b) the error in value reporting conditional on positive consumption. Results show that various survey designs exhibit widely differing error decompositions and hence a simple summary comparison of the total recorded consumption across surveys will obscure specific error patterns and inhibit lessons for improved consumption survey design. In light of these findings, the relative performance of common survey designs are discussed and design lessons are drawn in order to enhance the accuracy of item-specific consumption reporting and, consequently, measures of total household food consumption.     

Zimbabwe’s Agricultural Recovery Programme in the 1990s: an evaluation using household survey data

During the 1990s, the Government of Zimbabwe implemented an Agricultural Recovery Programme to help smallholder farmers recover from repeated severe droughts. The programme aimed to provide drought-affected smallholders with crop packs (free seeds and fertiliser) and mechanised tillage services. This article evaluates the coverage, poverty-sensitivity and impact of the programme using a more in-depth analysis of household survey data than has been done to date. The programme’s tillage component was unsuccessful, repeatedly reaching less than 5% of its target group; the crop pack component, however, reached four-fifths or more of its target group. Most of the poorer households received crop packs, but richer households were slightly more likely to get them. Those who did receive crop packs planted larger areas under staple crops, regardless of their poverty status. These findings are generally robust for a range of poverty proxies. Unfortunately, there is no clear evidence on the impact, if any, of crop packs on grain yields. Crop packs—properly attuned to local agro-ecological conditions—may serve a useful role in post-drought recovery. Steps must be taken, however, to ensure that all the poor receive crop packs. Attempts by government to provide mechanised tillage to hundreds of thousands of smallholder households are not recommended.     

Food aid and household food security in a conflict situation: Empirical evidence from Northern Uganda

It is well-established that armed political conflict has a detrimental effect on food security and household welfare: conflict induces food insecurity by reducing own food production, access to food through the market, and various other resources to sustain healthy and productive lives. One way of mitigating these adverse effects is to provide food aid. In this study we evaluate the impact of a World Food Programme intervention on household food security and asset protection among conflict-affected households in Northern Uganda. We employ propensity score matching to estimate the average treatment effect on food expenditure, food consumption and preservation of assets using a sample of 1265 observations from a 2008 survey. Our results reveal that the operation’s system of targeting beneficiaries was effective and in accordance with programme objectives. Food aid considerably reduced food expenditure of households, suggesting that recipients were net buyers of food, and that the food aid received was effectively consumed within the household. A corresponding positive effect on non-food expenditure was not found. Our results also indicate that food aid was effective in increasing meals consumed and in avoiding distress destocking of low value assets, but, surprisingly, only for male headed households.     

The hidden costs of outsourcing: evidence from patent data

Drawing on patent data for approximately 500 firms over 20 years, we advance recent theory on firm boundaries and test these propositions for the first time. We first provide evidence for the existence of knowledge complementarities between vertically related activities in a firm's value chain by showing that firms face increasing (decreasing) performance in conducting downstream activities (i.e., patent litigation) the less (more) they outsource related upstream activities (i.e., patent filing). We then propose and empirically demonstrate that vertical integration benefits through learning differ from vertical outsourcing costs through forgetting. We show that firms can partly offset these hidden outsourcing costs by sourcing similar upstream products from internal and external suppliers. Copyright © 2010 John Wiley & Sons, Ltd.     

Agricultural technology adoption and household welfare: Measurement and evidence

Previous studies on the adoption and impacts of improved crop varieties have relied on self-reported adoption status of the surveyed households. However, in the presence of weak variety maintenance and poorly functioning seed certification system, measurement errors in self-reported adoption status can be considerable. This paper investigates how such measurement errors can lead to biased welfare estimates. Using DNA-fingerprinting based varietal identification as a benchmark, we find that misclassification in self-reported adoption status is considerable, with significant false negative and positive response rates. We empirically show that such measurement errors lead to welfare estimates that are biased towards zero and substantially understate the poverty reduction effects of adoption. While the empirical evidence suggests attenuation bias, our theoretical exposition and simulations demonstrate that upward bias and sign reversal effects are also possible. The results point to the need for improved monitoring of the diffusion process of improved varieties through innovative adoption data collection approaches to generate robust evidence for prioritizing and justifying investments in agricultural research and extension.     

First-mover advantages from pioneering new markets: A survey of empirical evidence

Market pioneers can develop first-mover advantages that span decades. The most general first-mover advantage that helps explain higher pioneer market share levels is a broad product line or brand proliferation. In markets for experience goods, pioneers tend to shape consumer tastes and preferences in favor of the pioneering brand. While the preliminary results vary by industry, they indicate that market pioneers donot tend to perish more often than later entrants. Accounting profits for market pioneers generally are lower in the first four years of operation, but higher thereafter. Overall, market pioneers follow innovative strategies that have high initial costs and risks, but yield high potential returns.     

Accounting for ARPU: New evidence from international panel data

Average revenue per user (ARPU) is commonly used by regulators and industry observers to compare the performance of mobile telephony markets. Under the new EU electronic communications regulatory framework, some national regulatory authorities (NRAs) have linked higher ARPU with ‘significant market power’. This paper empirically examines the determinants of ARPU in a systematic way, taking account of service quality, market environment, regulation and quantity of service. The robust results suggest that concentration may not be a reliable indicator of competition in mobile markets; there are economies of density in mobile markets; and higher GDP per capita increases ARPU.     

Lessons learned from the national household food acquisition and purchase survey in the United States

The National Household Food Acquisition and Purchase Survey conducted in 2012 (FoodAPS-1) was an ambitious survey of Americans’ food acquisitions sponsored by the U.S. Department of Agriculture (USDA). The survey was challenging due to its goals of collecting comprehensive acquisition information and including data from extant sources to broaden the survey’s research capabilities. Some challenges were foreseen, and efforts were taken to overcome them through survey design features. Other challenges came as a surprise. This paper shares the experiences of the authors and others at USDA with survey design, survey implementation, and post-survey processing of data to ensure the availability of high-quality data to the research community. Lessons from FoodAPS-1 can inform similar future data collections both in the U.S. and abroad.     

Farm production diversity is associated with greater household dietary diversity in Malawi: Findings from nationally representative data

Farm production diversity has the potential to influence the diversity of household diets, an important nutrition outcome associated with the nutrient adequacy of diets and the nutritional status of individuals. Yet, little empirical research has assessed the relationship between farm diversity and diet diversity or the plausible causal mechanisms that may operate between these two constructs. This research examines cross-sectional data from the Malawi Third Integrated Household Survey (IHS3), a nationally representative sample of farming households in Malawi, implemented from March 2010–March 2011 as part of the World Bank Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). These data were used to determine the relationship between farm production diversity and household dietary diversity, and to identify determinants of this relationship. Two indicators of dietary diversity, a modified Household Dietary Diversity Score (HDDS), and the Food Consumption Score (FCS), were calculated along with three indicators of farm production diversity including the Simpson’s Index, a metric accounting for both species richness and evenness. In multiple regression analyses, adjusting standard errors for the complex survey design of the IHS3 and controlling for the effects of several covariates on household dietary diversity, farm production diversity was consistently positively associated with dietary diversity (P < 0.0001). The association of increased farm diversity as measured by a combined crop and livestock measure on dietary diversity was significantly greater in woman-headed households compared to those headed by men (HDDS: P = 0.008; FCS: P = 0.076). The positive association of farm diversity with dietary diversity was also greater in wealthier households (P < 0.05). Consumption of legumes, vegetables and fruits was especially strongly associated with greater farm diversity. More diverse production systems may contribute to more diverse household diets. However, this relationship is complex; it may be influenced by gender, wealth, control of household decisions, the relative market-orientation of a household’s agricultural production, and the specific nature of farm diversity.     

Food demand studies in Sub-Saharan Africa: a survey of empirical evidence

The recent empirical food demand studies on Sub-Saharan Africa show significant advances in demand specification and methodology, especially in the application of less restrictive and theoretically consistent flexible functional forms. The findings to date establish some broad patterns on effect of income, household demography and life cycle, location, and prices on food demand patterns. However, the numerical values of the demand estimates are less generalizable because of an insufficient number of data points to separate the true demand component from other confounding factors, which are linked to differences in modeling and estimation of demand relations. The priority for future research is to generate sufficiently detailed demand estimates that have a high utility for disaggregated policy analysis, but are based on a theoretically consistent and comparable methodology.     

Milking the data: Measuring milk off-take in extensive livestock systems. Experimental evidence from Niger

Milk is an important source of cash and nutrients for many households in developing countries. Yet, our understanding of the role of dairy production in livelihoods and nutritional outcomes is hindered by the lack of decent quality household survey data. Data on milk off-take for human consumption are difficult to collect in household surveys for a number of reasons which make accurate recall challenging for the respondent (continuous production and seasonality among others), introducing possibly severe biases in the computation of full household incomes and farm sales, as well as in the estimation of the contribution of livestock (specifically dairy) production to agricultural value added and the livelihoods of rural households.This paper presents results from a validation exercise implemented in Niger, where alternative survey instruments based on recall methods were administered to randomly selected households, and compared to a 12-month system of physical monitoring and recording of milk production. The results of the exercise show that reasonably accurate estimates via recall methods are possible, and provide a clear ranking of questionnaire design options that can inform future survey operations.     

Workers’ tenure and firm productivity: New evidence from matched employer-employee panel data

Using rich longitudinal matched employer-employee data on Belgian firms, we explore the impact of workers’ tenure on firm productivity. To do so, we estimate production functions augmented with firm-level measures of tenure. We deal with the endogeneity of standard inputs and tenure, which arises from unobserved firm heterogeneity and reverse causality, by applying a modified version of Ackerberg et al.’s (2015) control function method, which explicitly removes firm fixed effects. Consistently with recent theoretical predictions, our analyses point to positive, but decreasing, returns to tenure. We also find that the impact differs widely across several firm dimensions. Tenure is particularly beneficial for productivity in contexts characterized by a certain degree of routineness and low job complexity. Along the same lines, our findings indicate that tenure exerts stronger positive impacts in industrial and capital-intensive firms, as well as in firms less reliant on ICT-intensive and knowledge-intensive processes.     

Broadband Internet access,awareness, and use: Analysis of United States household data

Data obtained from a nationwide survey of US residences during September and October 2002 are used to investigate household awareness of high-speed Internet access, profile Internet access and use, and gain insight into how important always-on, price, speed, installation, and reliability attributes are in their choice of service. Preliminary analysis suggests relatively high awareness of cable modem and DSL availability. Almost 19 percent of the sample have high-speed connectivity, and the mean price paid per month for dial-up and high-speed access is $19.76 and $42.36, respectively. Preference for high-speed access is apparent among households with higher income and college education. About 63 percent of high-speed users have more than five years of online experience, compared to 48 percent of dial-up users, and high-speed users are twice as likely to share music files and photos, bank, trade stocks, and pay bills “many times a week” than dial-up users. Willingness-to-pay estimates indicate reliability of service, speed, and always-on connectivity are important Internet access attributes.     

The core‐peripheral structure of international knowledge flows: evidence from patent citation data

The importance of knowledge diffusion and external knowledge is generally acknowledged for their vital role to innovation. The purpose of this study is to investigate the international knowledge diffusion structure and its evolution using patent citation networks for three periods. The analyses are carried out from overall, active cluster as well as individual connection perspectives with the help of measures from social network analysis. Results show an obvious core‐peripheral structure of international knowledge diffusion. Most of the flows happen within core group. Knowledge flows between core and peripheral numbers also widely exist but not strong, while the flows among peripheral numbers are both sparse and weak. Significant improvements widely exist among Asian countries and regions according to their knowledge absorption and influence capacities, and Chinese Taiwan and South Korea are the most outstanding new stars among them with worthwhile experiences for other catch‐ups. It also suggests that BRICS and South–South knowledge linkages play an increased role in developing and emerging economy innovation systems as they gain momentum.     

Empirical studies of entry and exit: A survey of the evidence

Over 70 empirical studies of entry and exit patterns covering eleven different countries generally support the expectation that entry is more frequent in more profitable, rapidly growing industries, and slower where the absolute costs of capital required to build a minimum efficient scale plant are imposing. Scale economies, excess capacity, and limit pricing receive little empirical support as entry impediments. The evidence concerning the effects of advertising and R&D intensity is confusing.Exit is faster where profits are lower, and slower where durable specific (sunk) capital costs are more important. Exit and entry are strongly correlated, probably due to displacement (of incumbents by more efficient entrants) and vacuum effects (in which entrants are enticed by the prospects of selling to uncommitted customers abandoned by a recent exit).     

Mobile payment and rural household consumption: Evidence from China

Exploring effective measures to promote rural household consumption is a challenge for developing countries, where rural areas often face severe financial exclusion and undeveloped commercial services. In this research, the influence of mobile payment, a popular payment method emerging in recent years, on rural household consumption is assessed by adopting China Household Finance Survey of 2017. Estimation results under the instrumental variable method suggest that mobile payment has a statistically significant and facilitating effect on rural household consumption in China. This positive effect is attributed to the benefits of mobile payment in improving financial inclusion and the convenience of consumption activities for rural areas, which is verified by performing several disaggregated analyses in our study. This work provides new evidence for the increasing literature on the economic impact of financial technology and several enlightenments for developing countries to improve the quality of public life through information intervention policies.     

Land consolidation,specialization and household diets: Evidence from Rwanda

Despite rapid population growth, increasing land pressure and urbanization, farmers in Sub-Saharan Africa have not intensified their production in a sustainable manner and farming systems remain predominantly subsistence-oriented. In response, developing country governments increasingly implement programs that promote crop intensification and more commercially-oriented agricultural systems. Rwanda’s Crop Intensification Program (CIP), launched in 2007, is one such example. However, despite its apparent success in raising production of several priority crops, there are legitimate concerns about the food and nutrition security implications for households that are encouraged to consolidate their land, specialize in their production, and increasingly rely on markets for their food needs. Using recent household survey data and a propensity score matching difference-in-differences method, we find that participation in land consolidation activities had ambiguous consumption effects: it positively impacted on consumption of roots and tubers, but had a negative effect on meat, fish and fruits consumption and the potential availability of vitamin B12 in participants’ diets. This calls for a review of CIP implementation practices to enhance the program’s food and nutrition security outcomes, with improvements in market functioning and market access being potential starting points.     

Loop density and telephone company cost: Panel data evidence

The assumption that telephone company loop costs are determined significantly by loop density has been a bedrock assumption relied on in the development and implementation of several telecommunications programs including federal and state universal service programs. Increasingly telecommunications program development and implementation have focused on this relationship to the exclusion of all others. This article examines embedded loop cost data from a panel of Illinois telephone companies in order to examine the relationship between the costs that these companies report incurring and their respective loop densities. The analysis turns up little evidence that density is the sole driver of embedded costs.