Censored Quantile Regressions of Chronic and Transient Seasonal Poverty in Rwanda
نویسنده
چکیده
It is crucial for social policy in Less Developed Countries to identify separate correlates for transient poverty and chronic poverty at the household level because seasonal poverty substantially contributes to annual poverty. This has been attempted by estimating household equations for those poverty indicators typically by using Tobit and Probit models. However, when errors in household poverty equations are not distributed following a normal law, these models deliver biased estimates of parameters. Using quarterly data from Rwanda in 1983, we reject the normality assumption for household chronic and transient latent poverty measures and living standard variables. We treat this problem by estimating censored quantile regressions. The estimation results show that 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 its socio-demographic characteristics play important roles that are consistent with usual explanations of poverty. The 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 transient poverty, different variables have significant effects for the two estimation methods. Résumé L’identification de corrélats distincts pour la pauvreté transitoire et la pauvreté chronique au niveau des ménages est cruciale à l’établissement de la politique sociale dans les PVDs parce que la pauvreté saisonnière peut contribuer considérablement à la pauvreté. Ceci a été tenté via l’estimation d’équations d’indicateurs de pauvreté au niveau ménage, typiquement à l’aide de modèles Tobits et Probits. Toutefois, lorsque les erreurs dans des équations de pauvreté des ménages ne sont pas distribués suivant une loi normale, ces modèles fournissent des estimateurs inconsistents des paramètres. A partir de données de panel trimestrielles du Rwanda, nous rejetons l’hypothèse de normalité pour les mesures de pauvreté chroniques et transitoires des ménages. Nous traitons ce problème par l’estimation de régressions quantiles censurées. Les résultats d’estimation montrent que les différents corrélats sont significatifs pour la pauvreté chronique et la pauvreté transitoire. Les effets des inputs principaux (terre et travail) sont plus important pour la composante chronique de la pauvreté que pour la composante transitoire. Le lieu de résidence des ménages et ses caractéristiques socio-démographiques jouent des roles importants qui sont cohérents avec des explications naturelles de la pauvreté. Les résultats des régressions quantiles censurées et des régressions Tobit sont considérablement différents. Cependant, dans le cas de la pauvreté chronique, les signes des coefficients apparament significatifs sont généralement en accord, alors que pour la pauvreté transitoire différentes variables ont des effets significatifs pour les deux méthodes d’estimation. Outline
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