Consumption growth and spatial poverty traps: an analysis of the effect of social services and community infrastructures on living standards in rural Peru
AbstractWe test the effect of local geographic endowment of capital on household growth in living standards in rural Peru, using a four years unbalanced panel data set. Our theoretical model of household consumption growth allows for the effect of community variables to modify the returns to augmented capital in the household production function. Three different sources of data are used: the ENAHO 1997-2000 household surveys, the population census of 1993 and the district infrastructure census of 1997. Altogether the addition of these different data sources makes an unusually rich data set, at least when considered with developing country standards. As in Jalan and Ravallion (2002), we use a quasi-differencing method to identify the impact of locally determined geographic and socioeconomic variables, while removing unobserved household and community level fixed effects. GMM are then used to estimate the model parameters. Several significant interesting results appear, confirming that private consumption growth depends on local geographic variables.
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Bibliographic InfoPaper provided by Ibero-America Institute for Economic Research in its series Ibero America Institute for Econ. Research (IAI) Discussion Papers with number 124.
Length: 35 pages
Date of creation: 21 Oct 2005
Date of revision:
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Other versions of this item:
- Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2002. "Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru," Working Papers DT/2002/17, DIAL (Développement, Institutions et Mondialisation), revised Oct 2003.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-12 (All new papers)
- NEP-DEV-2005-11-12 (Development)
- NEP-GEO-2005-11-12 (Economic Geography)
- NEP-HRM-2005-11-12 (Human Capital & Human Resource Management)
- NEP-PBE-2005-11-12 (Public Economics)
- NEP-SOC-2005-11-12 (Social Norms & Social Capital)
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