Censored Quantile Regressions of Chronic and Transient Seasonal Poverty in Rwanda
AbstractIt is crucial for social policy in Less Developed Countries to identify correlates of poverty at the household level. This has been done in the literature by estimating household poverty equations typically with Tobit and Probit models. However, when the errors in these equations are non-normal and heteroscedastic, which is usually expected, these models deliver biased estimates. Using quarterly data from Rwanda in 1983, we reject the normality and homoscedasticity assumptions for household chronic and transient latent poverty equations. We treat this problem by estimating censored quantile regressions. Our results of censored quantile regressions and of inconsistent Tobit regressions are substantially different. However, in the case of chronic poverty the signs of the apparently significant coefficients are generally in agreement, while for seasonal transient poverty different variables have significant effects for the two estimation methods. Our second contribution is to study, for the first time, correlates of poverty indicators based on quarterly consumptions. Our results show that in Rwanda different correlates are significant for chronic poverty and for transient seasonal poverty. The effects of the main inputs (land and labour) are more important for the chronic component of poverty than for the transient one. Household location and socio-demographic characteristics play important roles that are consistent with usual explanations of poverty in the literature. Copyright 2002, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.
Volume (Year): 11 (2002)
Issue (Month): 4 (December)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: +44-(0)1865 271084
Fax: 01865 267 985
Web page: http://www.jae.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stefan Dercon & Joseph S. Shapiro, 2007. "Moving On, Staying Behind, Getting Lost: Lessons on poverty mobility from longitudinal data," Economics Series Working Papers GPRG-WPS-075, University of Oxford, Department of Economics.
- Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo Group Munich.
- Christophe MULLER and Sami BIBI, 2008. "Focused Transfer Targeting against Poverty Evidence from Tunisia," THEMA Working Papers 2008-37, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.