Using a unique panel data set for rural households in Zimbabwe we estimate a microeconomic model of growth under uncertainty, a stochastic version of the Ramsey model with livestock as the single asset. We use the estimation results in simulation experiments (over a 20-year period) to quantify...

Using a unique panel data set for rural households in Zimbabwe we estimate amicroeconomic model of growth under uncertainty, a stochastic version of the Ramsey modelwith livestock as the single asset. We use the estimation results in simulation experiments(over a 20-year period) to quantify the...

On the basis of a comparative study of 23 episodes involving commodity price shocks we find that both the public and private sectors typically save around half of a windfall gain resulting from a price rise. We argue that private windfalls should be left with the private sector rather than...