Three essays on the production and investment decisions of households living in rural India
type: CreativeWork
description: In order to end poverty by 2030, the declared goal of the United Nations, a better understanding is needed which policies help poor households to escape poverty and how to end its inter-generational transmission. Since the Millennium Declaration in September 2000, and the adoption of the Millennium Development Goals (MDGs), the delivery of basic social services, such as education, health, water supply and sanitation, has become the central focus of international development assistance. However, the provision of basic social services is not necessarily sufficient to lead to an accumulation of human and productive capital, which would allow households to escape poverty and interrupt its inter-generational transmission. To understand why people are poor, we need to understand what productive decisions poor households take, and to identify what constraints households face in their attempt to accumulate human, as well as, productive capital. A better understanding of such constraints could guide policies that have a long-term impact on poverty reduction and on development. A number of factor could explain why poor households operate at unprofitable levels and why they are constrained in their investment decisions. Empirical evidence points to different explanations: cost of learning and access to information, insufficient education, risk, credit constraints, non-convex production technologies, and behavioral patterns that are inconsistent with standard neoclassical models. Currently, one of the major challenges in formulating policies that foster productive investments among the poor, seems to be to disentangle the effects of scale, credit constraints, and the lack of insurance mechanisms. This thesis seeks to shed further light on the relative role of these three constraints. In the context of rural India, it analyzes what production and investment decisions households take and how important risk and credit constraints as well as scale effects are in these decisions. Fi…
abstract: In order to end poverty by 2030, the declared goal of the United Nations, a better understanding is needed which policies help poor households to escape poverty and how to end its inter-generational transmission. Since the Millennium Declaration in September 2000, and the adoption of the Millennium Development Goals (MDGs), the delivery of basic social services, such as education, health, water supply and sanitation, has become the central focus of international development assistance. However, the provision of basic social services is not necessarily sufficient to lead to an accumulation of human and productive capital, which would allow households to escape poverty and interrupt its inter-generational transmission. To understand why people are poor, we need to understand what productive decisions poor households take, and to identify what constraints households face in their attempt to accumulate human, as well as, productive capital. A better understanding of such constraints could guide policies that have a long-term impact on poverty reduction and on development. A number of factor could explain why poor households operate at unprofitable levels and why they are constrained in their investment decisions. Empirical evidence points to different explanations: cost of learning and access to information, insufficient education, risk, credit constraints, non-convex production technologies, and behavioral patterns that are inconsistent with standard neoclassical models. Currently, one of the major challenges in formulating policies that foster productive investments among the poor, seems to be to disentangle the effects of scale, credit constraints, and the lack of insurance mechanisms. This thesis seeks to shed further light on the relative role of these three constraints. In the context of rural India, it analyzes what production and investment decisions households take and how important risk and credit constraints as well as scale effects are in these decisions. Fi…
author: Gehrke, Esther
keywords: India, Risk, Human capital, Investment, Livestock
date published: 2016-10-21
date modified: 2026-07-24T03:45:03Z
provider: Universität Passau
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Universität Passau