Abandoning Coffee under the Threat of Violence and the Presence of Illicit Crops. Evidence from Colombia

Ana Mar�a Iba�ez Londo�o (), Juan Carlos Mu�oz Mora () and Philip Verwimp
Additional contact information
Ana Mar�a Iba�ez Londo�o: Universidad de los Andes- Colombia
Juan Carlos Mu�oz Mora: ECARES - Universit� Libre de Bruxelles
Authors registered in the RePEc Author Service: Juan Carlos Muñoz-Mora () and Ana Maria Ibáñez

No 150, HiCN Working Papers from Households in Conflict Network

Abstract: This paper explores the importance of the risk of violence on the decision making of rural households, using a unique panel data set for Colombian coffee-growers. We identify two channels. First, we examine the direct impact of conflict on agricultural production through the change in the percentage of the farm allocated to coffee. Second, we explore how conflict generates incentives to substitute from legal agricultural production to illegal crops. Following Dercon and Christiaensen (2011), we develop a dynamic consumption model where economic risk and the risk of violence are explicitly included. Theoretical results are tested using a parametric and semi-parametric approach. We find a significant negative effect of the risk of violence and the presence of illegal crops on the decision to continue coffee production and on the percentage of the farm allocated to coffee. Results are robust after controlling for endogeneity bias and after relaxing the normality assumption.

Keywords: selection model; armed conflict; illicit crop; coffee production (search for similar items in EconPapers)
JEL-codes: C21 C34 D13 D74 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2013-06
New Economics Papers: this item is included in nep-agr and nep-lam
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://hicn.org/wp-content/uploads/2012/06/HiCN-WP-150.pdf (application/pdf)

Related works:
Working Paper: Abandoning Coffee under the Threat of Violence and the Presence of Illicit Crops. Evidence from Colombia (2013)
Working Paper: Abandoning Coffee under the Threat of Violence and the Presence of Illicit Crops. Evidence from Colombia (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hic:wpaper:150

Access Statistics for this paper

More papers in HiCN Working Papers from Households in Conflict Network
Bibliographic data for series maintained by Tilman Brück () and () and () and ().