Continued Existence of Cows Disproves Central Tenets of Capitalism?

Santosh Anagol, Alvin Etang and Dean Karlan

No 156534, Center Discussion Papers from Yale University, Economic Growth Center

Abstract: We examine the returns from owning cows and buffaloes in rural India. With labor valued at market wages, households earn large, negative median returns from holding cows and buffaloes, at -304% and -75%, respectively. Making the stark assumption of labor valued at zero, median returns are then -5% for cows and +10% for buffaloes (with 52% and 46% of households earning negative returns for cows and buffaloes, respectively). Why do households continue to invest in livestock if economic returns are negative, or are these estimates wrong? We discuss potential explanations, including labor market failures, for why livestock investments may persist.

Keywords: Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; Farm Management; Institutional and Behavioral Economics; Labor and Human Capital; Production Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 40
Date: 2014-01
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Continued Existence of Cows Disproves Central Tenets of Capitalism? (2017)
Working Paper: Continued Existence of Cows Disproves Central Tenets of Capitalism? (2014)
Working Paper: Continued Existence of Cows Disproves Central Tenets of Capitalism? (2013)
Working Paper: Continued Existence ofr Cows Disproves Central Tenets of Capitalism? (2013)
Working Paper: Continued Existence of Cows Disproves Central Tenets of Capitalism? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:yaleeg:156534

DOI: 10.22004/ag.econ.156534

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