Growth and Shocks: Evidence from Rural Ethiopia.
Using panel data from rural Ethiopia, the article discusses the determinants of consumption growth (1989-1997), based on a microgrowth model, controlling for heterogeneity. Consumption grew substantially, but with diverse experiences across villages and individuals. Rainfall shocks have a substantial impact on consumption growth, which persists for many years. There also is a persistent growth impact from the large-scale famine in the 1980s, as well as substantial externalities from road infr...Expand abstract
- Journal of Development Economics
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