Farmers’ Social Expenditures and Agricultural Productivity A state variables approach

John Ulimwengu and Tsitsi Makombe

No 276000, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: With increasingly large shares of public expenditures going toward social sectors in agriculture-based economies, the issue becomes how to design a budget allocation scheme that maximizes agricultural productivity-enhancing effects of social expenditures. This study examines the impact of various subtypes of household health spending on agricultural labor productivity using data from 505 households in five Rwandan districts. Our findings confirm that change in agricultural productivity can be driven by change in marginal productivity of inputs induced by households’ health status. The latter are significantly impacted by households’ own social expenditures. This then suggests that there is a way to bundle social expenditures in order to compensate for the shortage of resources allocated to agriculture and therefore to harness their productivity-enhancing potential.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 33
Date: 2018-07
New Economics Papers: this item is included in nep-agr, nep-dev and nep-eff
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:276000

DOI: 10.22004/ag.econ.276000

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