Jenny C. Aker Webpage

Jenny C. Aker

Department of Agricultural and Resource Economics
University of California, Berkeley
207 Giannini Hall
Berkeley, CA 94702-3310
510 219-1663
E-mail: aker@are.berkeley.edu and jennaker@hotmail.com

RESEARCH INTERESTS
    My fields of specialization are development economics, applied econometrics, agricultural marketing and policy analysis and program evaluation. My research interests focus on the role of agro-food market performance for producer and consumer welfare in developing countries, primarily sub-Saharan Africa. More specifically, I am interested in the impact of information (technology) on market actors' behavior and market performance in developing countries. Using a panel dataset that I collected in Niger in collaboration with four non-governmental organizations (CRS, CARE, HKI and World Vision), I assess the impact of cell phones on grain market performance in Niger. A second paper tests for grain market performance during the 2005 Niger food crisis, based upon a dynamic time series panel dataset of prices, transaction costs and trade flows. A third paper looks at the structure and conduct of the cereal market in Niger, and the way in which this affects market performance. And finally, a fourth paper looks at the effect of social networks on household welfare and coping mechanisms in Tanzania. In addition to these core papers, I am also interested in vulnerability and early warning systems; the impact of food aid on consumers and producers in developing countries; producers' access to and use of market information; the use of information technology for literacy; program evaluation; and technological adoption in the health and agro-food sectors.
ACADEMIC INFORMATION
  • DISSERTATION TITLE: Three Essays on Markets and Welfare in Sub-Saharan Africa
  • RESEARCH INTERESTS: Development Economics, Agricultural Policy Analysis, Applied Econometrics, Food Markets and Policy Analysis, Program Evaluation
  • TEACHING INTERESTS: Development Economics, Agricultural Policy Analysis, Applied Econometrics, Microeconomics, Food Policy
  • DISSERTATION COMMITTEE AND REFERENCES
    • Professor Maximilian Auffhammer, Department of Agricultural and Resource Economics, University of California-Berkeley, auffhammer@are.berkeley.edu
    • Professor Guido Imbens, Department of Economics, Harvard University, imbens@fas.harvard.edu
    • Professor Edward Miguel, Department of Economics, University of California-Berkeley, miguel@econ.berkeley.edu
    • Professor Brian Wright, Department of Agricultural and Resource Economics, University of California-Berkeley, wright@are.berkeley.edu
    • Professor David Zilberman, Department of Agricultural and Resource Economics, University of California-Berkeley, zilberman@are.berkeley.edu
WORKING PAPERS
  • ACADEMIC PAPERS
    • Aker, Jenny C. "Does Digital Provide or Divide? The Impact of Cell Phones on Grain Markets in Niger” (job market paper)
        Due partly to costly information, price dispersion across markets is common in developed and developing countries. Between 2001 and 2006, cell phone service was phased in throughout Niger, providing an alternative and cheaper search technology to grain traders and other market actors. We construct a novel theoretical model of sequential search, in which traders engage in optimal search for the maximum sales price, net transport costs. The model predicts that cell phones will increase traders’ reservation sales prices and the number of markets over which they search, leading to a reduction in price dispersion across markets. To test the predictions of the theoretical model, we use a unique market and trader dataset from Niger that combines data on prices, transport costs, rainfall and grain production with cell phone access and trader behavior. We first exploit the quasi-experimental nature of cell phone coverage to estimate the impact of the staggered introduction of information technology on market performance. The results provide evidence that cell phones reduce grain price dispersion across markets by a minimum of 6.4 percent and reduce intra-annual price variation by 10 percent. Cell phones have a greater impact on price dispersion for market pairs that are farther away, and for those with lower road quality. This effect becomes larger as a higher percentage of markets have cell phone coverage. We provide empirical evidence in support of specific mechanisms that partially explain the impact of cell phones on market performance. Robustness checks suggest that the results are not driven by selection on unobservables, nor are they solely a result of general equilibrium effects. Calculations of the four-firm concentration index suggest that the grain market structure is competitive, so the observed reductions in price dispersion are not due to greater market collusion. The primary mechanism by which cell phones affect market-level outcomes appears to be a reduction in search costs, as grain traders operating in markets with cell phone coverage search over a greater number of markets and sell in more markets. The results suggest that cell phones improved consumer and trader welfare in Niger, perhaps averting an even worse outcome during the 2005 food crisis.
    • Aker, Jenny C. . "Droughts, Grain Markets and Food Crisis in Niger.”
        Famines are a common occurrence in the Sahelian region of Sub-Saharan Africa. In 2004, a drought occurred in Niger, resulting in a production shock, higher grain prices and a severe food crisis. Whereas a drought in 2000 resulted in lower per capita grain production relative to 2004, a food crisis did not occur. Similar to the Bangladeshi famine of 1974, the government and the media were quick to blame grain traders for the crisis, arguing that the removal of governmental regulations had led to a market failure during the crisis. Using a dataset that combines information on prices, transaction costs, rainfall, trade flows and food crisis status, we exploit rainfall variation to estimate the impact of drought on grain market performance in Niger during crisis and non-crisis years. Time series tests suggest that grain markets in Niger respond to supply shocks, and that markets are more integrated during drought years. Exploiting the exogenous nature of extreme rainfall in a difference-in-differences framework, we find that drought reduces grain price dispersion across markets. This impact is stronger as a higher percentage of markets are affected by drought, as was the case in 2004/2005. The results suggest that a market failure did not occur in 2005, contrary to media claims. Early warning systems in West Africa should focus on the spatial impact of drought and magnitude of production at the sub-regional level, as well as monitor prices in key forecasting markets. And finally, policies regarding the impact of local purchases and regional trade need to be carefully examined and discussed.
    • Aker, Jenny C. . "Social Networks and Household Welfare in Tanzania: Working Together to Get Out of Poverty.” (revise and resubmit, Journal of African Economies
        This paper examines empirically the effect of social capital, measured by household membership in community-based organizations and participation in village life, on the welfare of rural households in Tanzania. Using a database that combines standard information on household welfare with multidimensional measures of social capital, the paper attempts to address three challenges in the empirical estimation of the effect of social capital on household welfare: 1) the differential effects of household and village-level social capital; 2) the omitted variable bias associated with models of household expenditures; 3) and the joint endogeneity problem. Our main conclusion is that, controlling for omitted variables and joint endogeneity, household-level social capital is associated with a percentage increase in household per capita expenditures, and that this finding is robust to a variety of specifications and instruments. Preliminary results also suggest that social capital and human capital act as complements: as people acquire more education, the usefulness of these associations and networks for household expenditures is increased. Finally, we find that household-level social capital appears to be associated with a significant decrease in a household’s probability of being poor, indicating that social capital could be a valid investment for the rural poor in Tanzania.
    • Aker, Jenny C., Amir Heiman, Bruce McWilliams and David Zilberman (2005) . "Where the Market Meets the Economist: Marketing Tools and Technology Adoption.” (revise and resubmit, Agricultural Economics
  • POLICY PAPERS AND OTHER PUBLICATIONS
  • FELLOWSHIPS AND AWARDS
    • Awardee, Advanced Graduate Workshop on Globalization, Poverty and Development , Columbia University and the Brooks World Poverty Institute (Summer 2007)
    • Recipient of the Center for International and Development Economics Research (CIDER) Small Research Grant (Spring 2007)
    • Recipient of the Gordon Rausser Scholarship , University of California-Berkeley (Spring 2007)
    • Recipient of the Rocca Dissertation Fellowship , University of California-Berkeley (June 2006)
    • Recipient of the International Bureau for Economic Research Small Grants Award , University of California-Berkeley (June 2005)
    • William J. Fulbright Fellowship , Morocco (1997/1998)
    • Recipient of the Edmund A. Gullion Prize for high academic achievement , Fletcher School of Law and Diplomacy, Tufts University (May 1997)
    • Recipient of the Sasakawa Young Leadership Fellowship , Fletcher School of Law and Diplomacy, Tufts University (1996/1997)
    EXPERIENCE
    • TEACHING
      • Graduate Student Instructor, Intermediate Microeconomics. IAS 106 University of California-Berkeley. Spring 2005.
      • Graduate Student Instructor, Public International Law. The Fletcher School of Law and Diplomacy, Tufts University. 1996/1997.
      • Trainer and Facilitator for Non-Governmental Organizations on Agricultural Marketing, Food Security, Program Design and Evaluation, Strategic Planning
        • Agricultural Marketing Training in English and French , Catholic Relief Services. These materials are available upon request.
        • Food Security Technical Training in English and French , Catholic Relief Services. These materials are available upon request.
        • Title II Development Assistance Program Workshop in English and French , Catholic Relief Services. These materials are available upon request.
        • Designing a Strategic Plan for HIV and AIDS Programming in Rwanda , CHF International.
        • Conducting Market Analyses for USAID/Title II Programs, Food Aid Management.
    • RESEARCH
      • Graduate Research Instructor Department of Agricultural and Resource Economics, University of California-Berkeley (2003-present)
      • Independent researcher, Niger (2006/2007)
      • Graduate Research Instructor Department of Economics, University of California-Berkeley (Summer 2005)
      • Research Fellow and Fulbright Scholar, Institut Agronomique et Veterinaire, Universite Hassan II, Rabat, Morocco (1997/1998)
  • OTHER PROFESSIONAL EXPERIENCE
    • External Consultant for international non-governmental and research institutions , including the World Bank, Catholic Relief Services, CARE International, and CHF International. 2003-present
    • Deputy Regional Director for West and Central Africa, Catholic Relief Services. Accra, Ghana. 2000-2003
    • Regional Food Security and Monetization Advisor for West and Central Africa, Catholic Relief Services, Accra, Ghana. 1998-2000.
    • Intern, Economic Section. United States Embassy, Abu Dhabi, United Arab Emirates. Summer 1996.
    • Teaching Fellow , Casablanca American School. Casablanca, Morocco. 1994/1995.
  • CONFERENCES AND PRESENTATIONS
    OTHER LINKS
      "Pity sees suffering and wants to ease the pain; passion sees injustice and wants to settle the score. Pity implores the powerful to pay attention; passion warns them about what will happen if they don't. The risk of pity is that it kills with kindness; the promise of passion is that it builds on the hope that the poor are fully capable of helping themselves if given the chance. In 2005 the world's poor needed no more condolences; they needed people to get interested, get mad and then get to work."