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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Commodity price volatility and the psychological wellbeing of farmers
AU - Singhal, Saurabh
AU - Tarp, Finn
PY - 2024/3/4
Y1 - 2024/3/4
N2 - We examine the effects of income uncertainty on mental health in Vietnam. We assess this issue using volatility in the price of coffee, a key export commodity, that exposes small coffee farmers to income uncertainty. Using household panel data collected over 2016-2020, we find an increase in volatility of the international coffee price to be positively associated with psychological distress among coffee farmers. The magnitude is greater for males and the findings are robust to several checks. These results are further substantiated by corresponding estimates for related health measures and self-reported happiness. Channels include an increase in mental stress due to pessimistic expectations of future economic well-being, increased cognitive load and alcohol consumption, and reduced social capital. The results highlight the psychological toll of living with income uncertainty and provide support for the provision of social safety nets that protect farmers from frequent commodity price fluctuations.
AB - We examine the effects of income uncertainty on mental health in Vietnam. We assess this issue using volatility in the price of coffee, a key export commodity, that exposes small coffee farmers to income uncertainty. Using household panel data collected over 2016-2020, we find an increase in volatility of the international coffee price to be positively associated with psychological distress among coffee farmers. The magnitude is greater for males and the findings are robust to several checks. These results are further substantiated by corresponding estimates for related health measures and self-reported happiness. Channels include an increase in mental stress due to pessimistic expectations of future economic well-being, increased cognitive load and alcohol consumption, and reduced social capital. The results highlight the psychological toll of living with income uncertainty and provide support for the provision of social safety nets that protect farmers from frequent commodity price fluctuations.
KW - Depression
KW - Vietnam
KW - Mental Health
KW - income uncertainty
U2 - 10.1111/ajae.12468
DO - 10.1111/ajae.12468
M3 - Journal article
JO - American Journal of Agricultural Economics
JF - American Journal of Agricultural Economics
SN - 0002-9092
ER -