Continued Existence of Cows Disproves Central Tenets of Capitalism?

Santosh Anagol, Alvin Etang and Dean Karlan
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Alvin Etang: Yale University

Working Papers from Yale University, Department of Economics

Abstract: We examine the returns from owning cows and buffaloes in rural India. We estimate that when valuing labor at market wages, households earn large, negative average returns from holding cows and buffaloes, at negative 64% and negative 39% respectively. This puzzle is mostly explained if we value the household's own labor at zero (a stark assumption), in which case estimated average returns for cows is negative 6% and positive 13% for buffaloes. 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.

JEL-codes: E21 M40 O12 Q10 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-dev, nep-ger and nep-mac
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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:ecl:yaleco:122

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