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Abstract

A two-step (probit-truncated regression) model is used to examine the influence of public transfers on communal cattle marketing decisions in Botswana. Results show that publicly provided pensions reduce the probability of selling cattle but have no effect on the number of cattle sold. Government food rations and paid employment (which includes employment in a Public Works Program) reduce both the probability of selling cattle and the volume of cattle sold. Thus, public transfers are a disincentive to cattle marketing in Botswana, and they need to be targeted at poor households to minimize their adverse effects on the cattle industry.

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