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De Nicola F.,IFPRI
CAB Reviews: Perspectives in Agriculture, Veterinary Science, Nutrition and Natural Resources | Year: 2013

In recent years a growing amount of resources has been allocated for the advocacy and promotion of agricultural index insurance projects. Three factors motivated such actions: (i) agricultural production accounts for a large fraction of the economy in these countries, (ii) farmers' output largely depend on weather's realization given the agricultural technologies adopted, and (iii) covariant shocks such as weather variations remain quite uninsured. In this literature review, we report the theoretical and empirical evidence about the need and demand for these insurance products. We first discuss the potential behavioural impact of the provision of insurance. We then focus on the modalities of distributions and consider the economic and behavioural factors that are identified in the literature as constraints to the insurance diffusion.© 2013 CAB International.

Maystadt J.-F.,International Food Policy Research Institute | Ecker O.,IFPRI
American Journal of Agricultural Economics | Year: 2014

A growing body of evidence shows a causal relationship between extreme weather events and civil conflict incidence at the global level. We find that this causality is also valid for droughts and local violent conflicts in a within-country setting over a short time frame in the case of Somalia. We estimate that a one standard deviation increase in drought intensity and length raises the likelihood of conflict by 62%. We also find that drought affects conflict through livestock price changes, establishing livestock markets as the primary channel of transmission in Somalia. © The Author (2014).

Agriculture in Gujarat has grown rapidly over the last decade, driven at least partly by diversification to high value crops and dairying. High value agriculture requires better water control and offers higher returns for irrigation. Farmers, farm communities and the state government in Gujarat have responded to this requirement by implementing large-scale water supply and demand management projects like interlinking of rivers, the world's largest popular recharge movement, electricity distribution reforms to limit use of subsidized energy for groundwater irrigation and rapid expansion of areas under micro-irrigation. Some of these programmes have already been declared successful and are being scaled up in Gujarat (like the Saurashtra recharge movement) and emulated elsewhere (like the Jyotirgram Yojana) without much critical scrutiny. Other programmes like the initiative to spread micro-irrigation have not received the attention they deserve from the research community in spite of their apparent success. This paper subjects the biggest on-going supply- and demand-side initiatives for water management in Gujarat to critical scrutiny in light of the recent data and tries to draw lessons for the state and other parts of India facing sustainable water management challenges. © IWA Publishing 2013.

Hernandez M.A.,IFPRI | Trupkin D.R.,University of Montevideo
European Review of Agricultural Economics | Year: 2014

This paper examines the dynamics of volatility across major global exchanges for corn, wheat and soybeans in the USA, Europe and Asia. We follow a multivariate GARCH approach and account for the potential bias that may arise when considering exchanges with different closing times. The results indicate that agricultural markets are highly interrelated and there are both own- and cross-volatility spillovers and dependence among most of the exchanges. In particular, Chicago plays a major role in terms of spillover effects over other markets. Additionally, the level of interdependence between exchanges has only increased in recent years for some commodities. © Oxford University Press and Foundation for the European Review of Agricultural Economics 2013.

Minten B.,IFPRI | Stifel D.,Lafayette College | Tamru S.,Catholic University of Leuven
Journal of Development Studies | Year: 2014

We study cereal markets in Ethiopia over the last decade, a period that has been characterised by important local changes, including strong economic growth, urbanisation, improved road and communication infrastructure, and higher adoption of modern inputs in agriculture. These changes are associated with better spatial price integration as well as with significant declines in real price differences between supplying and receiving markets and in cereal milling and retail margins. In short, important improvements have occurred in Ethiopia's cereal marketing system. This is especially important because dysfunctional cereal markets were previously identified as an important cause of food insecurity in the country. © 2014 Taylor & Francis.

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