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This paper examines the impact of both exogenous idiosyncratic and covariate shock events on the consumption of farm households in rural Nigeria by using an ordinary least square method. The result of the overall sample shows that whilst idiosyncratic and climatic shock have no significant effect on household consumption, price shocks are having a significant negative impact on household consumer. By disaggregating the sample into poor and nonpoor households the result suggests that that the non-poor households are able to adequately insure against the effect of idiosyncratic shocks as well as the climatic shock on their consumption while the poorer ones had not been able to insure against the effect of shocks related to death, livestock loss, climate change and price changes on their consumption. This suggests that the farm households should be provided with an adequate and effective social protection measures that would mitigate the effect of shocks on their welfare.
This paper examines the impact of both exogenous idiosyncratic and covariate shock events on the consumption of farm households in rural Nigeria by using an ordinary least square method. The result of the overall sample shows that whilst idiosyncratic and climatic shock have no significant effect on household consumption, price shocks are having a significant negative impact on household consumer. By disaggregating the sample into poor and nonpoor households the result suggests that that the non-poor households are able to adequately insure against the effect of idiosyncratic shocks as well as the climatic shock on their consumption while the poorer ones had not been able to insure against the effect of shocks related to death, livestock loss, climate change and price changes on their consumption. This suggests that the farm households should be provided with an adequate and effective social protection measures that would mitigate the effect of shocks on their welfare.
This study examines the relationship between type of risks and income of the rural households in Pattani province, Thailand using the standard multiple regression analysis. A multi-stage sampling technique is employed to select 600 households of 12 districts in the rural Pattani province and a structured questionnaire is used for data collection. Evidences from descriptive analysis show that the type of risks faced by households in rural Pattani province are job loss, reduction of salary, household member died, household members who work have accident, marital problem and infection of crops/livestock. In addition, result from the regression analysis suggests that job loss, household member died and marital problem have significant negative effects on the households' income. The result suggests that job loss has adverse impact on households' income. The implication of this is that the living standard of household will continue to deteriorate as large proportion of them could either not find job or lost their jobs. Therefore, an important policy suggestion is that government should formulate a policy that considers the creation of employment especially for the poor households with low-income particularly in the rural area. Also, government should provide an appropriate social security benefits program on which the affected population can rely on in case of problem such as sickness/accident/death of the household members. Concerning the marital problem in the households, an important implication to the policy maker is to formulate a policy or design strategy development principles of holistic family.
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