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31 Table 1. Answers to income and consumption adequacy questions Percentage of responses: less than adequate more than adequate adequate Total income 68.7% 30.6% 0.7% Food consumption 46.6% 51.4% 2.0% Clothing 52.7% 46.9% 0.3% Housing 58.8% 41.0% 0.1% Schooling 52.6% 47.1% 0.3% Health care 52.0% 47.9% 0.1% Number of observations 3317
32 Table 2. Household and ward characteristics Household characteristics Unit Mean Median St.dev. Min. Max. Total annual consumption expenditures US$ Total value of assets US$ Travel time to nearest local market Hours Number of household members Number Share of adult females in the household Share Share of children aged 6 and under Share Share of youths aged 7 to 20 Share Share of members aged 65 and above Share % households with female head 13.6% Age of household head Years Years of schooling of head's father Years % hholds in which head's father had non-farm job 17.0% Number of households 3337 Ward characteristics Inequality in per capita consumption Gini coef Urban population within 2 hours travel time thousands Population density in the district per sqkm Median rice price in ward US$/Kg Median wage rate in ward US$/day Average Consumption expenditure US$ Median Consumption Expenditure US$ Average distance to nearest market Hours Average rainfall in ward mm Standard deviation of rainfall in ward mm Number of wards 274
33 Table 3. Relative consumption and subjective consumption adequacy Subjective adequacy of: Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (14.35)*** (12.49)*** (9.36)*** (8.49)*** (6.56)*** (9.20)*** Ward mean consumption (log) (4.17)*** (3.63)*** (4.89)*** (3.81)*** (3.01)*** (2.81)*** Ward mean distance to market (log) (7.68)*** (7.92)*** (6.92)*** (7.91)*** (8.95)*** (5.32)*** Regional dummies included but not shown Intercept (0.69) (0.95) (1.61) (0.63) (0.80) (1.39) Number of observations Testing whether = (or =1) Chi square statistic p-value Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1%
34 Table 4. Relative consumption effect with additional controls and instrumented consumption Subjective adequacy of: Consumption Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (*) (4.74)*** (6.59)*** (4.64)*** (5.00)*** (3.22)*** (3.43)*** Ward mean consumption (log) (*) (4.75)*** (4.50)*** (3.50)*** (3.43)*** (3.87)*** (2.90)*** Household controls Value of assets (log) (2.03)** (0.42) (0.20) (0.30) (1.14) (1.56) Household size (log) (4.46)*** (6.07)*** (3.96)*** (5.01)*** (2.75)*** (3.09)*** Share of adult females (0.02) (1.24) (0.07) (1.51) (0.07) (0.27) Share of children 6 and under (0.79) (3.24)*** (0.65) (2.91)*** (0.17) (0.02) Share of youths aged 7 to (0.19) (1.10) (0.68) (2.45)** (0.42) (1.61) Share of elderly 65 and above (1.30) (1.04) (0.11) (0.83) (1.31) (0.22) Age of household head (1.70)* (0.02) (1.47) (2.73)*** (1.29) (0.10) Age of household head squared (1.79)* (0.07) (1.45) (2.66)*** (1.13) (0.17) Female head dummy (0.89) (0.77) (0.13) (1.18) (0.31) (1.01) Ward variables Ward mean distance to market (log) (4.18)*** (1.34) (1.44) (2.52)** (4.29)*** (1.03) Gini coef. of per capita consumption (0.14) (1.09) (0.68) (1.69)* (0.85) (0.08) Urban population within 2 hrs travel time (2.89)*** (3.47)*** (4.89)*** (3.19)*** (3.04)*** (3.27)*** Population Density (per sqkm) (3.81)*** (2.02)** (2.15)** (0.59) (1.15) (0.18) Median wage rate in ward (log) (2.01)** (1.43) (1.04) (1.62) (0.65) (0.72) Median rice price in ward (log) (0.41) (0.30) (2.17)** (0.03) (1.57) (0.24) Regional dummies included but not shown Intercept (0.04) (3.00)*** (1.27) (1.33) (0.27) (1.11) Number of observations Testing whether = Chi square statistic p-value Overidentification test Hansen-J statistic p-value Validity of instruments Anderson-Rubin LR Statistic p-value Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1% (*) instrumented -- see Table A1 for the instrumenting regression
35 Table 5. Comparing different models Subjective adequacy of: A. Using ward mean consumption Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (*) (4.74)*** (6.59)*** (4.64)*** (5.00)*** (3.22)*** (3.43)*** Ward mean consumption (log) (*) (4.75)*** (4.50)*** (3.50)*** (3.43)*** (3.87)*** (2.90)*** Other regressors as in Table 4 Log-likelihood B. Using ward median consumption Consumption expenditures (log) (*) (4.59)*** (6.45)*** (4.62)*** (4.98)*** (3.63)*** (3.47)*** Ward median consumption (log) (*) (4.45)*** (4.39)*** (3.44)*** (3.44)*** (4.38)*** (2.90)*** Other regressors as in Table 4 Log-likelihood C. Using ward rank in consumption Consumption expenditures (log) (*) (0.35) (2.61)*** (1.06) (1.46) (0.64) (0.71) Ward rank in consumption (*) (4.84)*** (4.55)*** (3.49)*** (3.63)*** (4.31)*** (3.18)*** Other regressors as in Table 4 Log-likelihood Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1% (*) instrumented -- see Table A1 for the instrumenting regression
36 Table 6. Absolute poverty and relative consumption Subjective adequacy of: Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (0.82) (3.24)*** (0.56) (2.53)** (3.28)*** (1.09) Ward mean consumption (log) (1.94)* (4.13)*** (1.50) (3.30)*** (3.90)*** (1.82)* Ward consumption (log) * household consumption (log) (1.41) (3.74)*** (0.93) (2.90)*** (3.53)*** (1.50) Ward mean distance to market (log) (7.38)*** (7.46)*** (6.69)*** (7.69)*** (8.68)*** (5.04)*** Regional and belt dummies included but not shown Intercept (1.35) (3.64)*** (1.12) (2.94)*** (3.63)*** (1.36) Number of observations Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1%
37 Table 7. Relative poverty and relative consumption Subjective adequacy of: Food Clothing Housing Schooling Health care Income Relative income, if below mean (*) (5.10)*** (4.59)*** (3.45)*** (3.35)*** (3.66)*** (2.81)*** Relative income, if above mean (*) (3.93)*** (3.82)*** (3.33)*** (3.33)*** (3.88)*** (2.78)*** Other regressors same as in Table 4 Number of observations Testing whether u= l Chi square statistic p-value Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1% (*) instrumented -- see Table A1 for the instrumenting regression
38 Table 8. Relative consumption and market isolation Subjective adequacy of: Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (*) (4.55)*** (5.82)*** (3.96)*** (4.58)*** (3.39)*** (3.54)*** Ward mean consumption (log) (*) (4.58)*** (4.42)*** (3.57)*** (3.83)*** (4.20)*** (3.01)*** Ward consumption*ward distance (*) (2.36)** (3.06)*** (0.63) (1.46) (2.35)** (1.43) Ward consumption*migrant dummy (*) (0.95) (2.37)** (1.42) (0.19) (0.07) (0.02) Ward mean distance to market (log) (2.20)** (3.20)*** (0.56) (1.34) (1.98)** (1.63) Migrant dummy (1.55) (3.15)*** (2.34)** (0.92) (1.17) (0.53) Other regressors as in Table 4 Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1% (*) instrumented -- see Table A1 for the instrumenting regression
39 Table 9. Relative consumption and birth district Subjective adequacy of: Food Clothing Housing Schooling Health care Income Consumption expenditures (log) (*) (4.27)*** (5.77)*** (3.92)*** (4.53)*** (3.30)*** (3.76)*** Ward mean consumption (log) (*) (4.85)*** (4.49)*** (3.33)*** (3.61)*** (3.98)*** (2.87)*** Average consumption in district of residence (log) (*) (2.21)** (1.25) (0.64) (0.15) (0.30) (0.48) Average consumption in district of birth (log) (*) (1.70)* (2.89)*** (1.08) (1.80)* (1.77)* (2.36)** Other regressors as in Table 8 Absolute value of t statistics in parentheses: * significant at 10%; ** significant at 5%; *** significant at 1% (*) instrumented -- see Table A1 for the instrumenting regression
40 Table A1. Instrumenting regressions Individual Ward mean Median Rank of hh Relative Ward cons. Ward cons. consumption consumption consumption consumption consumption * distance * migrant Instruments: used in: Table 4 Table 4 Table 5 Table 5 Table 7 Table 8 Table 8 Father's education (log) (4.16)*** (0.24) (0.00) (3.97)*** (3.99)*** (0.11) (1.71)* Dummy=1 if father employed in non-farm job (0.81) (0.96) (1.51) (0.30) (0.46) (0.87) (1.02) Dummy=1 if mother emplyed in non-farm job (0.66) (0.30) (0.15) (0.17) (0.84) (4.55)*** (1.55) Rainfall * father's non-farm job dummy (0.57) (0.49) (1.16) (0.08) (0.30) (0.11) (1.12) St.dev. of rainfall*father non-farm job dummy (0.51) (0.31) (0.17) (0.34) (0.59) (0.49) (0.36) Rainfall * father' education (1.32) (1.51) (1.19) (0.69) (0.23) (0.77) (0.27) St.dev. of rainfall*father's education (0.80) (2.66)*** (2.65)*** (0.59) (1.06) (0.36) (0.52) Ward averages Log(mean household size) (1.21) (7.04)*** (4.89)*** (12.07)*** (12.03)*** (0.13) (0.74) Mean of share of adult females (1.40) (1.37) (0.67) (0.44) (0.09) (0.73) (0.72) Mean of share of children 6 and under (0.51) (1.68)* (1.32) (2.64)*** (2.47)** (1.55) (2.72)*** Mean of share of youth aged 7 to (0.97) (1.38) (1.05) (1.16) (0.64) (0.08) (1.27) Mean of share of elderly (1.77)* (1.69)* (1.41) (0.01) (0.14) (0.37) (1.02) Mean age of household head (0.06) (0.14) (0.48) (1.11) (0.24) (0.18) (1.49) Mean age of household head, squared (0.20) (0.49) (0.08) (0.91) (0.47) (0.31) (1.39) % of female headed households (0.41) (0.41) (0.49) (0.63) (1.25) (0.74) (3.27)*** Ward variables Ward mean distance to market (log) (6.18)*** (6.36)*** (5.24)*** (0.62) (1.02) (0.32) Median rice price in ward (log) (2.30)** (2.81)*** (3.05)*** (3.07)*** (2.06)** (3.68)*** (1.50) Median wage rate in ward (log) (6.40)*** (6.74)*** (5.53)*** (0.80) (1.08) (5.40)*** (0.13) Gini coef. of per capita consumption (0.35) (1.05) (0.73) (2.56)** (1.88)* (0.63) (1.12) Urban population within 2 hrs travel time (4.39)*** (3.85)*** (3.41)*** (0.76) (0.62) (3.15)*** (0.17) Population Density (per sqkm) (2.79)*** (2.66)*** (2.56)** (2.72)*** (0.39) (0.12) (0.38) Household variables Household size (log) (26.90)*** (1.26) (1.51) (27.19)*** (27.25)*** (2.27)** (1.94)* Share of adult females (0.10) (0.12) (0.02) (0.70) (0.09) (1.09) (4.40)*** Share of children 6 and under (6.93)*** (0.61) (0.55) (8.41)*** (7.03)*** (2.08)** (4.19)*** Share of youths aged 7 to (4.44)*** (0.05) (0.19) (5.31)*** (4.08)*** (1.70)* (3.40)*** Share of elderly 65 and above (0.16) (0.43) (1.30) (0.18) (0.00) (0.49) (2.47)** Age of household head (0.60) (0.42) (0.05) (1.11) (0.66) (1.14) (0.74) Age of household head squared (0.52) (0.07) (0.14) (0.95) (0.52) (0.98) (1.29) Female head dummy (0.37) (0.91) (0.97) (0.27) (0.29) (1.60) (6.48)*** Value of assets (log) (11.79)*** (5.56)*** (5.81)*** (10.62)*** (10.91)*** (2.49)** (1.48) Regional dummies included but not shown Constant (12.88)*** (13.84)*** (9.45)*** (3.09)*** (2.71)*** (1.56) (1.86)* Number of observations R-squared Joint test of the instruments F-test of joint significance of the instruments p-value Robust t statistics in parentheses * significant at 10%; ** significant at 5%; *** significant at 1%
41 Figure 1.Relative Poverty and Subjective Satisfaction 95% confidence interval shown Food Clothing Housing Relative Consumption(log) Subjective satisfaction Subjective satisfaction Subjective satisfaction Relative Consumption(log) Relative Consumption(log) Schooling Health Care Income Relative Consumption(log) Subjective satisfaction Subjective satisfaction Subjective satisfaction Relative Consumption(log) Relative Consumption(log)
42 Figure 2. Relative Consumption and Market Isolation Ward level Av. distance to market (log) Food Clothing Housing Schooling Healthcare Income
CSAE WPS/2008-06 1998-2001 panel Mitch panel Mitch panel Mitch panel 1998-2001 panel 1998 1999 2001 Poverty 68.7% 74.1% 73.1% 70.6% 63.6% Extreme Poverty 28.6% 32.0% 34.5% 25.9% 25.4%
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