The Use of Wealth Rank as an Explanatory Variable in a Model of Cultivation Decisions among Households in Buffer Zone Communities

Abstract

This paper discusses an evaluation of wealth ranks generated by a wealth ranking exercise as an explanatory variable in econometric analysis of farm and household factors affecting cultivation decisions among forest buffer zone communities in the Upper Manupali Watershed, Bukidnon, Philippines. Wealth ranks improved the explanatory power of the model of cultivation decisions but not the model of access. However, wealth—both in monetary terms and in the terms implied by the wealth ranks—was not a major determinant of buffer zone access and cultivation.

Wealth rank descriptors indicate that initiative, attitude, and community relations were also significant determinants of a household’s decision to make investments in farming. As a tool that builds on local people’s own understanding of their circumstances, the paper shows that wealth ranks present an opportunity for analytical tools to capture and elaborate on the socio-cultural dimensions of household decision-making.

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