Blame It on the Rain: Rainfall Variability, Consumption Smoothing, and Subjective Well‐being in Rural Ethiopia
American journal of agricultural economics(2021)
Abstract
How does income uncertainty affect individual well-being? Combining individual-level panel data from rural Ethiopia with high-resolution meteorological data, we estimate that mean-preserving increases in rainfall variability are associated with reductions in objective consumption and subjective well-being. Mediation analysis suggests that the estimated reduction in consumption does not fully explain the total effect on individual well-being. Increased rainfall variability also has a large direct effect on individual well-being. These findings suggest that the gains from further consumption smoothing are likely greater than estimates based solely on observed consumption fluctuations.
MoreTranslated text
Key words
consumption smoothing,income uncertainty,rainfall variability,subjective well-being
AI Read Science
Must-Reading Tree
Example
Generate MRT to find the research sequence of this paper
Chat Paper
Summary is being generated by the instructions you defined