Land Tenure and Common Pool Resources in Rural Ethiopia: A Study Based on Fifteen Sites

The evolution of land tenure in Ethiopia during the Imperial period directed towards private and individualized property is discussed both in general terms and by examining conditions at specific localities. This evolution was brought to an abrupt end by the land reform of 1975 with nationalization. The same logic of subsistence agriculture as in traditional tenures seems to be the basis for the reform. With the abandonment of the socialist transformation of agriculture no vision about future developments in land tenure seems to exist. Privatization is suggested to improve the security of land holding, to increase agricultural investment, to assist the development of other markets as well as preserve common pool resources. L’article étudie l’évolution du régime foncier éthiopien sous l’empire, d’un point de vue général et examinant la situation spécifique de certaines localités. Cette évolution, vers une propriété privée et individualisée des terres, a été brutalement interrompue par les nationalisations conduites dans le cadre de la réforme agraire de 1975. Celle‐ci semble s’être appuyée sur la même logique d’agriculture de subsistance que celle qui sous‐tendait les régimes fonciers traditionnels. Aujourd’hui, la transformation socialiste de l’agriculture ayant été abandonnée, il ne semble exister aucune vision pour l’évolution future du régime foncier. Un programme de privatisation est suggéré pour améliorer la sécurité du régime de possession des terres, accroître l’investissement agricole, faciliter le développement d’autres marchés et préserver les ressources communes.     

Changing Tax Elasticities Over Time: The Case of Tanzania

Abstract: In most studies, tax elasticity, which measures responsiveness of tax revenue to income growth, is assumed constant over time by the use of a double-log tax function. In practice, tax elasticities may change over time with changing tax structures and economic conditions. Neglecting tax elasticity changes can lead to inappropriate tax forecasts or policy recommendations. In this study, use of a flexible form tax function admits the possibility of fluctuating intertemporal tax elasticities. The model is applied to tax revenue data for Tanzania, a developing country in southeastern Africa, and intertemporal tax elasticities are estimated for the overall tax system and for major Tanzanian taxes. The unrestricted flexible form model is compared with alternative restricted models, and chi-squared tests are used to reject the restrictions in all cases. The general finding of the study is that tax elasticities in Tanzania have been varying over time, a warning to researchers who have been relying on constant elasticity models for estimating tax elasticities. Résumé: Dans la plupart des études, on prend pour hypothése qu'en utilisant une fonction double logarithmique pour les impôts, l'élasticité de l'im pôt qui mesure l'ajustement des recettes fiscales par rapport à la croissance des revenus, demeure constante. Dans la pratique, il se peut que I'élasticité de l'impôt évolue dans le temps avec les variations des structures de la fiscalité et des conditions économiques. Si on néglige l'éolution de l'élasticité de l'impôt, cette omission peut se traduire par des prévisions fiscales ou des recommandations de politique générale inadapées à la situation. Dans cette étude, le recours à une fonction flexible d'estimation de la fiscalité revient à admettre la possibilité de fluctuations, dans le temps, de l'élasticité de l'impôt. Ce modéle (fonction double logarithmique) est appliqué aux données concernant les recettes fiscales de la Tanzanie, un pays en développement du sud-est de l'Afrique, pour lequel des estimations des fluctuations dans le temps, de l'élasticité de l'impôt font l'objet d'estimations pour l'ensemble du systéme fiscal ainsi que pour les principaux impôts. Le modèle flexible sans contrainte est comparé au modèle avec contrainte. On a eu recours aux tests du khi-deux pour rejeter les hypothèses de contraintes dans tous les cas. Dans cette étude on en est arrivéà la conclusion que les élasticités de l'impôt en Tanzanie ont varié avec le temps. Cette conclusion est un avertissement aux chercheurs qui tablent sur des modèles d'élasticité constante pour faire des estimations de l'élasticité de l'impôt.     

On the measurement of risk aversion from experimental data

Attitudes towards risk are measured for households in Northern Zambia using an experimental gambling approach with real payoffs that at maximum were equal to 30% of average total annual income per capita. The results of the experiment show decreasing absolute risk aversion and increasing partial risk aversion. Determinants of risk aversion are investigated using random effects interval regression model exploiting the panel data structure of the repeated experiments. Wealth indicator variables are found to be significant, and partial relative risk aversion decreases as wealth increases. Females are found to be more risk averse than males.     

A simulation study of income tax evasion

In a game-simulation context, tax evasion behavior of 15 subjects was observed. Large fines were found to be more effective deterrents than frequent audits. The decision to underreport income appears to be influenced by different factors than the magnitude of underreporting. Tax evasion behavior differed widely among individuals.     

Technology adoption under seed access constraints and the economic impacts of improved pigeonpea varieties in Tanzania

Dry‐land legumes, well adapted to drought‐prone areas, have largely been neglected in the past despite the good opportunities they offer for income growth and food (and nutritional) security for the poor. This study evaluated the adoption and impact of two farmer and market‐preferred and disease‐resistant pigeonpea varieties that were developed and promoted in semi‐arid Tanzania. The new varieties were resistant to fusarium wilt, a fungal disease devastating the crop. However, farmers wanting to adopt new varieties did not adopt due to seed access constraints and under‐developed seed delivery systems. Adoption of new varieties is therefore analyzed using an augmented double hurdle model that allows estimating variety adoption conditional on seed access thresholds accounting for the additional information on sample separation. The study identifies the crucial role of seed access (local supply), extension, education, participatory decision making, capital, and household assets in determining adoption. The social economic benefits of the technology and policies for improved seed access were further analyzed using the extended economic surplus method (DREAM model). Even under restrictive assumptions, overall discounted benefits were found to be quite attractive, indicating the need for additional efforts to scale‐up the success story. Analysis of changes in research benefits from relaxing the seed access constraint showed that net gains would increase by up to 30% if farmer access to improved seeds can be assured. Smallholder farmers are the major beneficiaries along with consumers and rural net‐buyers who gain from productivity‐induced lower market prices.     

Adoption of New Technologies in Ethiopian Agriculture: The Case of Tegulet-Bulga District,Shoa Province

Adoption of agricultural production technologies in developing countries is influenced by a wide range of economic and social factors as well as physical and technical aspects of farming and the risk attitude of farmers. It is important to understand the role of these factors to ensure the development of appropriate technologies and the design of successful development projects. This study examines the impact of such factors on the adoption of single-ox, fertilizer and pesticide technologies as part of a post-drought recovery project in Tegulet-Bulga district in Ethiopia. Models to evaluate the probability of adoption are specified for the respective technologies and are estimated using a logit maximum likelihood procedure, results indicate that the most significant variable affecting the probability of adoption of all three technologies is farm size; the impact is negative for single-ox technology and positive for fertilizer and pesticide use. Economic factors such as income, wealth and debt generally exhibit statistically significant influence on the adoption of single-ox and pesticide technologies as do family size, access to outside information, education and experience. The effect of socio-economic factors on adoption of fertilizer and pesticide technologies is greater in the area which has more access to outside information and off-farm activities (Ankober) than in more ‘self-contained’ area (Seladengay). The impact of the degree of risk aversion of farmers is found to be significant and negative for single-ox technology in both areas, and for fertilizer and pesticide technologies in only one area. The predicted probabilities of technology adoption by an average farmer are found to increase dramatically with the level of education and access or exposure to outside information.     

GENETIC ENDOWMENTS, PARENTAL AND CHILD HEALTH IN RURAL ETHIOPIA

The determinants of long‐term child health in Ethiopia – as measured by height‐for‐age z‐scores – are examined controlling for community, household and individual level heterogeneity. The influence of parental health and the role of genetics are analysed. The height of parents is highly significant but no significant correlation with per capita expenditures is found. Food prices, birth order, sex and age of children, number of siblings of the mother, years of marriage and altitude are important determinants. Deprivations in later years are more important than during pre‐ or neo‐natal periods. Genetic inheritance seems to explain the correlations between child and parental health.