Honors Project - Open Access
This paper studies the effects of food crises–large and sudden increases in food prices–on asset liquidation. Substantial research exists on household food insecurity as a result of a food crisis, but studies on households’ coping strategies have so far been limited to natural shocks such as flood, drought, and financial crises. In this paper, I use an adapted version of the asset-based poverty trap model to explain households’ use of asset liquidation as a coping strategy when faced with food crises. To test my theory, I employ a household-level panel data set from Tanzania that covers the years 2008, 2010, and 2012. I estimate fixed effects regressions of productive and unproductive asset levels on a measure of household-specific food prices. I find no statistically significant evidence in support of asset liquidation. My results suggest an asset smoothing behavior across all types of households.
Dieye, Ibrahima, "Food Crises and Asset Liquidation: Household-level Evidence from Tanzania" (2017). Economics Honors Projects. 76.
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