Production Risks a nd Food Security under A lternative T echnology C hoices in Malawi: A pplication o f a Multinomial Endogenous Switching R egression
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Date
2014Author
Kassie, Menale
Teklewold, Hailemariam
Marenya, Paswel P
Moti, Jaleta
Erenstein, Olaf
Language
esMetadata
Show full item recordAbstract
Employing nationally representative data, we investigatetheimpactofSustainable
Intensification Practices (SIPs) on farm households’ food security, downside risk
and the cost of risk in Malawi.The analysis relies on aflexible moment-based specification
of astochastic production function in a multinomial endogenous switching
regression framework to correct for the selection bias stemming both from
observed and unobserved heterogeneity. A quantile moment approach is used to
estimate the cost of risk.After controlling for the effects of unobserved heterogeneity
and several observable variables on maize production and downside risk functions,estimation results show that the adoption of SIPs increases food security and
reduces downside risk exposure and the cost of risk. We estimate greater food
security and larger reduction in downside risk from simultaneous adoption of both
crop diversification(maize–legume intercropping androtations) and minimum tillage,
suggesting that there are complementary benefits from these practices. We
find most of the cost of risk comes from exposure to downside risk. Our findings
imply that in dealing with production risks development agents should encourage
URI
http://onlinelibrary.wiley.com/doi/10.1111/1477-9552.12099/fullhttp://hdl.handle.net/11295/88435
Citation
Journal of Agricultural Economics, 2014Publisher
Wiley