Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets
Jere Behrman,
Andrew Foster and
Mark Rosenzweig
Journal of Business & Economic Statistics, 1997, vol. 15, issue 2, 282-92
Abstract:
A methodology is developed for examining savings behavior in rural areas of developing countries that explicitly incorporates the sequential decision process in agriculture. The approach is used to examine the relative importance of alternative forms of savings in the presence and absence of formal financial intermediaries. The authors' results, based on stage-specific panel data from Pakistan, provide evidence that the presence of financial intermediaries importantly influences the use of formal savings and transfers for income smoothing. They also find that there are significant biases in evaluations of the savings-income relationship that are inattentive to the within-year dynamics of agricultural production.
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:bes:jnlbes:v:15:y:1997:i:2:p:282-92
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