Agriculture–nutrition linkages with heterogeneous,unobserved returns and costs: Insights from Tajikistan

Agriculture–nutrition linkages (ANLs) have been increasingly investigated in the literature. However, nutritional returns and costs of household agricultural production practices (APPs) in semisubsistence settings are poorly understood. We fill these knowledge gaps using pooled cross-section data sets in Tajikistan, where semisubsistence farming and undernutrition coexist despite relatively good agricultural infrastructure and education systems. Agricultural diversification, yield enhancement, production expansion are positively associated with various nutritional outcomes, particularly in areas with poor food market access. Decomposition exercises suggest that nutritional returns and costs of these APPs vary across households, and the adoption of APPs is driven by the expected nutritional returns. In Tajikistan, improving nutrition through household ANLs requires growing the smallholder agricultural sector in multiple dimensions, including diversification, intensification, and expansion, while also understanding better the pathways of ANLs and addressing bottlenecks at appropriate stages of such pathways.     

Variability in agricultural productivity and rural household consumption inequality: Evidence from Nigeria and Uganda

This paper uses multiple rounds of panel data to assess the distributional implications of the variability in agricultural productivity in Nigeria and Uganda. It uses both a conventional decomposition and a regression‐based inequality decomposition approach to estimate the impact of climate‐induced variability in agricultural productivity. To mitigate the endogeneity associated with unobserved time‐invariant and time‐variant household fixed effects, we use rainfall shocks as a proxy for estimating the exogenous variability in agricultural productivity that affects consumption. Results suggest that a 10% increase in the variability of agricultural productivity tends to decrease household consumption by 38 and 52% on average for Nigeria and Uganda, respectively. Controlling for other factors, variability in agricultural productivity contributed to between 25% and 43% of consumption inequality between 2010 and 2015 for Nigeria; and 16% and 31% of consumption inequality between 2009 and 2011 for Uganda. We also show that variability in agricultural productivity increases changes in consumption inequality over time.     

Characteristics of Private‐Sector Tractor Service Provisions: Insights from Nigeria

Agricultural mechanization has been integral to agricultural transformation during periods of development. Mechanization‐service provisions can be constrained by economies of scale, seasonality, limited mobility, or heterogeneous inputs quality. However, information has been scarce regarding how the private sector has overcome these constraints especially in countries like Nigeria that are at low agricultural development stages. We present the results of a small survey of tractor owner‐operators conducted in Nigeria. We find that existing private‐sector tractor‐hiring services in Nigeria are indeed constrained. However, we also find heterogeneity among these owner‐operators. In particular, those who buy tractors from private markets or from private individuals are more efficient than those who receive tractors through government programs, providing services to a greater area at lower costs, including during off‐peak seasons, sometimes selecting machinery types according to soil types. We conclude with a discussion of some policy implications.     

Risks and farmers’ investment in productive assets in Nigeria

The majority of farmers in sub‐Saharan Africa (SSA) lack the means to mitigate the impact of risks associated with rainfall and commodity prices due to capital constraints and the imperfect insurance market in these countries. Because most SSA farmers are risk averse, they may be willing to invest in productive assets that can mitigate the impacts of such risks if their capital constraints are relaxed through external financial assistance. We test this hypothesis by using panel data on investment behavior of Nigerian farmers who received financial assistance on productive assets. The empirical results show that farmers facing higher rainfall risks are more likely to invest in irrigation pumps that can mitigate the impact of rainfall risks, while those facing higher risks of white gari price are more likely to invest in milling machines that enable them to process cassava into flour instead of gari, which supports our hypothesis.     

Sales location among semi‐subsistence cassava farmers in Benin: a heteroskedastic double selection model

In much of rural Africa, high transaction costs limit farmers’ market participation and thus their potential for income growth. Transaction costs can affect not only whether a farmer sells product but also whether sales occur at the farm gate or at a market. If production behavior is related to a chosen sales location, then analysis of interventions can be improved by explicit consideration of the decision of where to sell. This article develops a double‐selection model that explains consumption and production decisions by semi‐subsistence farmers who first decide whether to be a seller and then whether to sell at the farm gate or at an off‐farm location before deciding on production and consumption. The study tests the validity of this dual‐criteria model against a single‐criterion model in which a grower first decides to be a seller and then decides production, consumption, and sales location simultaneously. The results suggest that the dual‐criteria model provides more information than the single‐criterion model using a sample of cassava producer in Benin.     

Agricultural mechanisation and gendered labour activities across sectors: Micro-evidence from multi-country farm household data

The gender difference in employment across sectors is a critical element of gender inequality in rural livelihoods and welfare in developing countries. The role of production technologies, including agricultural mechanisation, in addressing gender inequality is increasingly explored. Knowledge gaps remain, however, including how agricultural mechanisation differentially affects labour engagements across sectors. This study aims to partly fill these knowledge gaps through micro-evidence from seven countries (Ethiopia, Ghana, Nigeria, Tanzania, India, Nepal and Vietnam), using several nationally representative panel data and supplementary data and applying correlated random effects double-hurdle models with instrumental variables. We find that the use of tractors and/or combine harvesters by the household induces a greater shift from farm activities to non-farm activities by female members than by male members. While statistical significance varies, these patterns generally hold consistently across all seven countries studied. These patterns also hold across different farm sizes. While these are short-term relations, agricultural mechanisation proxied by tractors and/or combine harvesters is one of the crucial contributors to gendered rural livelihood. Future studies should more closely investigate these patterns' underlying mechanisms and implications.     

Fiscal stimulus effectiveness in Japan: evidence from recent policies

This article examines the effects of Japanese fiscal policy after the 2008 global financial crisis using a mixed vector autoregression/event study approach. We focus on the effects of stimulus packages with environmental benefits. The empirical results show that a tax break and subsidy programme designed to promote the adoption of eco-friendly cars helped stimulate automobile production, while a similar programme intended to promote the purchase of energy-efficient appliances had no effect on appliance production.     

The effects of fiscal policy in the 1990s in Japan: A VAR analysis with event studies

This paper examines the effects of Japanese fiscal policy during the 1990s. A mixed vector autoregression (VAR)/event study approach is used for this purpose. The first empirical finding is that in the late 1990s, the negative effect of fiscal policy was larger and more persistent than the positive effect. This finding suggests that the large fiscal expansions in the late 1990s were inadequate for stimulating the macroeconomy in terms of the size and persistence of their policy effects. The second finding is that the permanent tax cuts implemented in the former part of the 1990s increased consumer durable spending significantly and persistently. This increase may reflect consumers’ incentive to spend before the increase in the consumption tax rate in April 1997.     

Custom‐hired tractor services and returns to scale in smallholder agriculture: a production function approach

Historically, agricultural transformation has often accompanied the increase in the returns to scale. Little direct evidence exists, however, on what actually causes such increase, despite the knowledge of many factors that are associated with this increase. We fill this knowledge gap by testing whether hiring in tractor services has raised returns to scale in agriculture at the household level in Nepal Terai that has undergone rapid growth in the tractor use through custom‐hiring services. Using Switching Regression and Inverse‐Probability‐Weighted Generalized Method of Moments, we address two sources of endogeneity involved with the estimation of returns to scale; (1) farmers’ self‐selection on whether to hire in tractor services and (2) use of inputs in the production function. For both Cobb‐Douglas and Translog production function specifications, we find that hiring in tractor services significantly increased the returns to scale in agricultural production by about 0.2 ～ 0.3 among farm households not owning tractors, for which suitable control groups are found. Findings are robust under various alternative specifications.     

Trait perceptions influence economic out-group bias: lab and field evidence from Vietnam

Group favoritism is typically directed toward in-group members and against out-group members, but these cross-group effects often vary. Little is known about why group effects on economic choices vary. We use a survey method developed in social psychology to measure stereotyped attitudes of one group toward another. These attitudes are then associated with prosociality in five experimental games (also using an unusual amount of individual-level sociodemographic control). We present evidence from an artificial field experiment of a majority group with high status (Vietnamese) exhibiting no disfavoritism toward a lower-status out-group (Khmer) and typical disfavoritism to a second out-group (Chinese). Both Vietnamese and Chinese groups see the Khmer as warm but incompetent, attitudes which seem to activate empathy rather than contempt. The results suggest that measuring between-group stereotype attitudes can be used to predict the sign of cross-group favoritism in other natural settings.