Continued existence of cows disproves central tenets of capitalism?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economic Growth Center Discussion Paper ; No. 1031

Classification and Topics

• Classification: Wirtschaft ; Macroeconomics: Consumption; Saving; Wealth ; Microeconomic Analyses of Economic Development
• Subject: Investment ; Profits ; Livestock ; Labor markets ; Tierhaltung ; Ländlicher Raum ; Rendite ; Lohn ; Haushaltsökonomik ; Indien

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Anagol, Santosh ; Etang, Alvin ; Karlan, Dean
• Event: Veröffentlichung
• (who): Yale University, Economic Growth Center
• (where): New Haven, CT
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/98219
• Last update: 10.03.2025, 11:42 AM CET