Citation

Discussion Paper Details

Please find the details for DP9639 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Continued Existence of Cows Disproves Central Tenets of Capitalism?

Author(s): Santosh Anagol, Alvin Etang and Dean S. Karlan

Publication Date: September 2013

Keyword(s): Investment, Labor markets, Livestock, Profits and Savings

Programme Area(s): Development Economics

Abstract: We examine the returns from owning cows and buffaloes in rural India. We estimate that when valuing labor at market wages, households earn large, negative average returns from holding cows and buffaloes, at negative 64% and negative 39% respectively. This puzzle is mostly explained if we value the household?s own labor at zero (a stark assumption), in which case estimated average returns for cows is negative 6% and positive 13% for buffaloes. Why do households continue to invest in livestock if economic returns are negative, or are these estimates wrong? We discuss potential explanations, including labor market failures, for why livestock investments may persist.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9639

Bibliographic Reference

Anagol, S, Etang, A and Karlan, D. 2013. ' Continued Existence of Cows Disproves Central Tenets of Capitalism?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9639