Transcript Slide 1

IW Outes-Leon

Nutrition and Growth in Rural Ethiopia

BREAD Summer School 2008

Ingo W. Outes-Leon, Oxford University BREAD 2008 - 1

Overview A. Introduction B. Data and Empirical Model C. Results D. Conclusions

IW Outes-Leon BREAD 2008 - 2

IW Outes-Leon

A.1 Introduction – Aim and Motivation

 

Test whether poor nutrition and health has a negative effect on a HHs ability to generate future consumption We estimate effect of adult low BMI on HH consumption growth, after controlling for other HH assets.

Necessary, but not sufficient, condition for nutritional poverty traps to exist.

  

Combine

Nutritional Poverty Trap (Dasgupta and Ray) - Productivity Effect

Morbidity theories (Deaton (2005) and Fogel (1992)) - Health Effect

With Micro-Growth models

(Jalan and Ravallion (2003), Antman and McKenzie (2005) and Dercon and Shapiro (2007))

And literature on Non-linearity in BMI

(Dasgupta (1993) and Strauss and Thomas (1998))

BREAD 2008 - 3

IW Outes-Leon

A.2 Introduction – Aim and Motivation

   

Take inspiration from Mankiw, Romer and Weil (1992), estimate:

HH consumption growth (1995 to 2004) on Lagged dependent variable And HH Assets and Other characteristics on baseline (1995) Adult Low BMI enters equation as further component of HH human capital

That is, Conditional convergence type of model.

So no actual test of poverty traps

But able to indicate if low BMI has a drag-down effect on HH growth

BREAD 2008 - 4

A.3 Introduction – Contribution and Challenges Findings and Contribution:

  

IV methods provide evidence of negative Growth Effect of low BMI

 

Evidence of Persistence of the 1984 Drought on 1995 adult BMI Application of ‘weak’ IV estimation and inference methods.

Estimation: IV Fuller Estimator Inferences: Conditional Likelihood Ratio (CLR) Moreira p-values IW Outes-Leon

Challenges:

  

Validity of Instrumentation Methodology

Doubtful, but IV estimates still interesting Disentangle village-specific nutritional effects from individual HH effects

Unobserved Village Effects vs local nutritional poverty traps (e.g. shocks and HH infrastructure)

Quartile regressions might provide further insight.

Treatment of Other Assets, especially Livestock BREAD 2008 - 5

IW Outes-Leon

B.1 ERHS Data – Is low BMI bad for growth?

   

ERHS: 1470 HHs in 15 villages in rural Ethiopia; 1994 to 2004 period; High poverty: 35% poor HHs in 1995 (Dercon and Krishnan (2003)) Incidence of Adult Underweight: 21% of HH Heads (<18.5) 1995-2004 Growth pa: 4.3% (all HHs) ; 6.0% (Low BMI HH Heads).

  .4

.2

0 .3

.1

-.1

Kernel smoothing: No apparent Poverty Trap Quartile Kernel smoothing: ‘low BMI’ effect for poor HHS ?

-.2

15 15.5

16 16.5

17 17.5

18 18.5

19 19.5

20.5

21 21.5

20 Body Mass Index, 1995 22 22.5

23 23.5

24 24.5

25 .15

.125

.1

.075

Quartile 1 Quartile 2 Quartile 3 Quartile 4 .05

.025

0 -.025

-.05

-.075

-.1

15 15.5

16 16.5

17 17.5

18 18.5

19 19.5

20.5

21 21.5

20 Body Mass Index, 1995 22 22.5

23 23.5

24 24.5

25

BREAD 2008 - 6

IW Outes-Leon

B.2 Empirical Model

(1)

(ln

y it

 ln

y

) /

p

  ln

y

X

 1 

W

 2 

S it

 3 

v it

LHS: Food Consumption Growth (1995 to 2004), per annum RHS: 1995 Baseline HH characteristics:

    

Lagged Dependent Var: Log Consumption 1995 Life-cycle controls – cohort dummies HH Assets: low BMI, Livestock, Land, Education, HH structure Shocks: Rainfall, price shocks Village Characteristics/ Village Fixed Effects Definition of Variables of Interest:

‘low BMI (Head)’ – dummy for BMI<18.5 of HH head;

‘low BMI (HH Share)’ – share of adults with BMI<18.5; Endogeneity Concerns: low BMI , livestock and lagged dependent variable BREAD 2008 - 7

IW Outes-Leon

B.3 Identification Strategies

Growth (t to t-p) 1984 1994 1995 2004 t-p

Method A: Lagged Endogenous Variables – 1994

 

Strong but invalid instruments.

LATE interpretation of estimates.

t

Method B: 1984 Drought Shock

  

IV: self-reported 1984 Drought Shock.

Valid if self-reported shock is unrelated to growth, after controlling for assets.

Some validity tests are passed – But validity remains questionable

Comparison OLS vs IV estimates still interesting:

Analogous to LATE: BMI growth effect of long-term vulnerability BREAD 2008 - 8

IW Outes-Leon

C.1 Naïve and Lagged Endog. IVs

Consumption Growth Regressions Dependent: Change in Log Consumption, 1995-2004 Log Consumption., t-1 Low BMI (Head), t-1 Low BMI (HH share), t-1 Livestock, Cat 1, t-2 Livestock, Cat 2, t-2 Livestock, Cat 3, t-2 Livestock, Cat 4, t-2 Livestock, Cat 5, t-2 Livestock, Cat 6, t-2 Land, t-1 Relative Land, t-1 Schooling, 1994 Chronic h. problem, 1994 Rainfall Shock, t to t-1 Price Shock, t to t-1 Price Index, t-1 _cons Nr Instruments Cragg-Donald F-Stat Cohort, & demo. controls Village Dummies - FE Nr. Observations OLS (1a) -0.1036

-22.76

-0.0112

-1.28

-0.0029

-0.38

0.0374

4.84

0.0017

2.64

0.0013

2.35

0.312

4.37

None Yes No 764

0.0211

1.90

0.0148

1.44

0.0384

3.4

0.054

4.95

0.0568

4.78

0.0814

4.39

-0.0063

-0.48

0.0065

1.3

-0.0003

-0.03

Naïve OLS Model OLS (1b) -0.1021

-21.65

-0.0063

-0.5

0.0196

1.75

0.0153

1.48

0.0347

3.06

0.0496

4.3

0.0557

4.59

0.078

4.2

-0.009

-0.67

0.0076

1.52

0.0009

0.11

-0.0024

-0.31

0.0377

4.83

0.0016

2.36

0.0013

2.48

0.2949

4.1

None Yes No 764

Endog: Low BMI and Consumption, 1995 Lagged Endog IV IV: 1994 IV GMM (2a) IV GMM (2b) -0.074

-3.51

-0.04

-2.17

-0.078

-3.5

0.013

1.11

0.008

0.72

0.035

2.96

0.042

3.48

0.048

3.69

0.073

3.53

-0.02

-1.37

0.007

1.35

-0.003

-0.39

-0.069

-2.49

0.016

1.32

0.012

1.06

0.037

3.16

0.046

3.73

0.051

3.8

0.077

3.64

-0.022

-1.5

0.008

1.61

-0.003

-0.33

0.007

0.86

0.026

2.52

0.001

0.83

0 0.39

0.314

3.75

2 23.11

Yes No 764 0.005

0.72

0.027

2.47

0.001

0.85

0 0.42

0.333

3.84

2 20.88

Yes No 764

Naïve:

 

No BMI effect Livestock non-linearities Lagged IV:

‘Low BMI (Head)’ reduces growth by 4% (Robustness checks omitted):

BMI effect - robust to changing length of Lag.

But not robust to introduction of Village FE Note: T-statistics reported. Bold coefficients indicate significance at the 10% level. First-Stage estimates not reported. Periods defined as [t=2004], [t-1=1995] and [t-2=1994]. Livestock categories indicate single units of scaled livestock, except for categories 4 to 6 that correspond with ‘4 to 6’, ‘6 to 10’ and ‘more than 10’ scaled units respectively; livestock default category is ‘less than 1’. Cohort and demographic controls include: ‘hh size’, ‘nr male members’, ‘share of female members’, ‘Δ hh size’, ‘Δ nr children members’, ‘Δ nr female members’ and dummies for each decade of age of HH head.

BREAD 2008 - 9

C.2 Quartile IV Regressions – Lagged Endog IVs

IW Outes-Leon Quartile Regressions, Endog: Low BMI (Head), 1995 by Av. Consumption, 1994-1995 Consumption Growth 1995 to 2004 IV Fuller Quartile 1 Panel A - Standard Controls Low BMI (Head), t-1 s.e.

F-Stat (First-Stage) Panel B - Village Fixed Effects Low BMI (Head), t-1 - 0.101

-2.71 *** 49.18

- 0.073

s.e.

-1.91 * F-Stat (First-Stage) Panel C – Consumption Quartiles by Village Low BMI (Head), t-1 30.85

- 0.118

s.e.

F-Stat (First-Stage) -2.72 *** 32.11

IV: Low BMI 1994 IV Fuller Quartile 2 IV Fuller Quartile 3

-0.046

-1.50

26.94

-0.0298

-1.17

21.13

-0.0499

-1.88 *

52.61

0.0015

0.06

36.13

-0.0064

-0.25

33.28

-0.0682

-1.78 *

22.03

IV Fuller Quartile 4

-0.0677

-1.74 *

32.49

-0.0294

-0.81

29.99

0.0107

0.36

36.08

   

BMI effect most likely to exist only among poorest Use village-specific quartiles Effect is largest among the poor.

Robust to Village FE and Village-Specific Quartiles Note: T-statistics reported. Coefficients highlighted in bold indicate significance at the 5% level. F-statistics reported in bold indicate the presence of ‘strong’ IVs. All regressions reported include same controls as in slide C.1

BREAD 2008 - 10

IW Outes-Leon

C.3 Drought IVs – IV GMM

Exogenous IV Regressions IV Set 1: Drought and Food Aid, 1984 IV GMM (1) First Stage - IV Determinants of Low BMI, t 1984 Drought Dummy 1984 Food Aid value 1984 Drought X 1984 Food Aid 0.0724

2.04

-1.15E-05 -2.81

1.18E-05 1.62

Drought Dummy, 1984 to 1994 Endog: Low BMI (Head), 1995 IV Set 2: Drought 1984 IV Set 3: Drought and Food Aid, 1984 to 1994 IV GMM (2) IV GMM (3) 0.0784

2.30

Food Aid value, 1984 to 1994 Drought X Food Aid, 1984 to 1994 0.0603

1.76

-7.15E-06 -3.55

4.48E-06 1.27

Second Stage - Consumption Growth, t to t-1 Aver. Log Cons., 1994 and 1995 Low BMI (Head), t-1 -0.1122

-9.72

-0.1683

-1.43

-0.1149

-8.92

-0.2498

-1.65

-0.1069

-11.10

-0.0981

-1.70

Vill. Consumption, t-1 Vill. Low BMI, t-1 Vill. Livestock, t-1 Vill. Land, t-1 First-Stage Nr Instruments F-Stat Second-Stage Hansen J Overid Test - p-value HH Asstes and Cohort Controls Village Dummies R-Square Nr. Observations

3

5.57

0.31

Yes No 0.051

707 1

5.31

Yes No -0.285

713 3

6.26

0.24

Yes No 0.233

707

Note: T-statistics reported. Coefficients highlighted in bold indicate significance at the 10% level. Controls: HH Assets, Cohort dummies and HH demographic variables IV Set 1, with Village Means IV GMM (4)

0.0125

0.35

-4.60E-06 -1.30

1.12E-05 1.60

-0.0986

-10.30

0.0995

1.09

-0.0180

-0.88

-0.2932

-2.74

0.0123

2.87

-0.1353

-2.37

3

1.23

0.67

Yes No 0.256

707

BREAD 2008 - 11

IW Outes-Leon

C.4 Drought IVs – Weak IVs

IV GMM (First-Stage) F-Stats:

Stock and Yogo (2005) critical values

F-Stats from [5.31] to [6.26] suggest: OLS Bias IV estimates include 30% to 20% of the Weak IV GMM estimates are unreliable – under finite-samples, (Murray (2006)):

IV GMM point estimates can be substantially bias;

Standard Errors tend to be invalid and smaller (!!) Estimation:

IV Fuller and IV LIML Methods are more robust to ‘weak’ IVs

In the literature: IV Fuller method is preferred estimator.

See Stock, Wright and Yogo (2002) and Murray (2006).

Inferences:

CLR Moreira and Anderson-Rubin tests more robust

CLR Moreira methods shown to dominate alternative methods

See Andrews, Moreira and Stock (2005) and Murray (2006).

BREAD 2008 - 12

IW Outes-Leon

C.5 Estimates and Inferences – Robust to ‘Weak’ IVs

Inference and Estimators, robust to Weak IVs IV Set 1: Drought and Food Aid, 1984 (1) Endog: Low BMI (Head), 1995 IV Set 2: Drought 1984 (2) IV Set 3: Drought and Food Aid, 1984 to 1994 (3) IV GMM IV LIML IV Fuller Wald, p-value CLR, p-value Anderson-Rubin, p-value Wald, Confidence Interval CLR, Confidence Interval Anderson-Rubin, Confidence Interval F Stat (First-Stage) Hansen J Overid Test - p-value R-Square (Second-Stage) Nr. Observations

-0.1683

-1.43

-0.2476

-1.49

-0.1532

-1.80

0.0740

0.0327 *** 0.0583

[-0.519, 0.0239] [-2.1257, -0.0219] [-47.669, 0.0075]

5.57

0.3115

0.0509

707 -0.2498

-1.65

-0.2498

-1.65

-0.1539

-2.03

0.0750

0.0157 *** 0.0157

[-0.5244, 0.0248] [-1.2636, -0.0449] [-1.2636, -0.0449]

5.31

-0.2847

713

-0.0981

-1.70

-0.2065

-2.18

-0.1503

-2.47

0.0390

0.0170 *** 0.0381

[-0.4023, -0.0108] [-0.6793, -0.037] [-0.9795, -0.0096]

6.26

0.2431

0.2327

707

Nr Instruments IV Period Drought Dummy Food Aid value Drought X Food Aid

3 1984 Yes Yes Yes 1 1984 Yes No No 3 1984 to 1994 Yes Yes Yes

Note: T-statistics reported. Coefficients highlighted in bold indicate significance at the 10% level. Wald, Moreira Conditional Likelihood Ratio (CLR) and Anderson Rubin p-values and corresponding confidence intervals reported in square brackets.

BREAD 2008 - 13

IW Outes-Leon

C.6 Further on Drought IVs

Food Aid - Validity

 

Better connected HHs – obtain more Food Aid and grow faster. No bias appreciable when comparing with ‘IV Set 2: 1984 Drought Only’

 

Self-Reported Drought likely endogenous

E.g. Better insured HHs in 1984 drought villages – not affected by Drought.

No available HH information prior to 1984 drought.

Use answer ‘Did “food sharing” increase during famine?’ as extra control.

 

Livestock Endogeneity and Low BMI Bias

Current Implicit Ass: 1984 Drought affects exclusively HH health.

Persistence in Livestock Assets might be behind ‘low BMI’ effects Over-id Drought IV estimates with Endog: Low BMI and Low Livestock

 

Model is unreliable due to ‘very weak’ IVs.

But ‘Low BMI’ effect remains large [-0.10].

While ‘Low Livestock’ effect is increased substantially; BREAD 2008 - 14

IW Outes-Leon

C.8 Quartile IV Regressions – Drought IVs

Quartile Regressions, Endog: Low BMI (Head), 1995 by Av. Consumption, 1994-1995 Consumption Growth 1995 to 2004 IV Fuller Quartile 1 Panel A - Standard Controls Low BMI (Head), t-1 s.e.

CLR Moreira p-value F-Stat (First-Stage) Panel B - Village Fixed Effects Low BMI (Head), t-1 s.e.

CLR Moreira p-value -0.1756

-2.65

[0.0060] *** 8.35

-0.0448

-1.01

Undefined

F-Stat (First-Stage) Panel C – Consumption Quartiles by Village Low BMI (Head), t-1

1.87

-0.1249

s.e.

CLR Moreira p-value F-Stat (First-Stage)

-1.75

[0.0628]

**

9.85

IV: Drought 1984 IV Fuller Quartile 2 IV Fuller Quartile 3

-0.0373

-0.61

Undefined 3.65

-0.0156

-0.31

Undefined 1.94

-0.0193

-3.90

Undefined 0.01

-0.0112

-0.81

Undefined 0.05

0.0079

0.52

Undefined 0.01

0.0626

2.35

Undefined 0.15

IV Fuller Quartile 4

-0.0091

-0.34

Undefined -0.52

0.017

3.11

Undefined 0.01

0.0248

0.42

Undefined 2.56

  

BMI effect most likely to exist only among poorest With Village FE – ‘low BMI’ effect disappears Although it is robust to Village-Specific Quartiles Note: T-statistics reported. Coefficients highlighted in bold indicate significance at the 10% level. Moreira Conditional Likelihood Ratio (CLR) p-values reported in square brackets. ‘Undefined’ CLR p-value indicates that confidence intervals were unbounded. F-statistics reported in bold indicate the presence of ‘strong’ IVs. All regressions reported include same controls as in Slide C.4

BREAD 2008 - 15

IW Outes-Leon

D.1 Conclusions

Uncover substantial persistence of 1984 drought on 1995 livestock and BMI

   

Low BMI has significant negative effect on subsequent HH growth.

Lagged Endog IVs and Drought IVs provide results consistent with each other.

Growth effect of Low BMI might not be causal but can be interpreted as growth effect of low BMI persistence (Lagged IV) or HH vulnerability (Drought IV).

This Low BMI burden is overwhelmingly borne by the poor.

Growth effect is large in magnitude

For lowest quartile (with village FE), persistence of low BMI reduces growth by 7% percentage points per annum, for a period of nine years.

 

Drought IV estimates suggest a very large effect points per annum, for nine-year period.

But partly include village and ‘livestock’ effects.

– up to 15% percentage BREAD 2008 - 16

D.2 Going Forward

Alternative IVs; Alternative tests of validity;

Arellano-Bond Panel Estimation

 

Can tackle Unobserved HH Heterogeneity Unpack HH FE – seek for 1984 Drought effect

Testing for Mechanism of low BMI:

Income and productivity

Higher morbidity IW Outes-Leon BREAD 2008 - 17

Many Thanks

IW Outes-Leon BREAD 2008 - 18

IW Outes-Leon

C.3 Lagged Endogenous IVs – Robustness

Consumption Growth Regressions Dependent: Change in Log Consumption, 1995-2004 Log Consumption., t-1 Low BMI (Head), t-1 Low BMI (HH share), t-1 Vill. Consumption, t-1 Vill. Low BMI, t-1 Vill. Livestock, t-1 Vill. Land, t-1 Growth: 1995-2004 IV: IV GMM (1a) 1994 Lagged Endog IV IV GMM (1b) IV GMM (2a) 1994 (2b) Endog: Low BMI and Consumption, 1995 Lagged Endog IV, Growth: 1997-2004 IV: IV GMM Village Means Growth: 1995-2004 IV: 1994 Growth: 1997-2004 IV: 1994 IV GMM (3a) IV GMM (3b) IV GMM (4a) IV GMM (4b) -0.074

-3.51

-0.078

-3.5

-0.054

-1.36

-0.054

-1.45

-0.081

-2.36

-0.084

-2.32

-0.034

-0.63

-0.037

-0.74

-0.04

-2.17

-0.042

-1.34

-0.033

-1.77

-0.06

-1.78

-0.069

-2.49

-0.063

-1.36

-0.002

-0.05

-0.06

-1.14

-0.058

-1.86

0.002

0.05

-0.04

-0.71

-0.04

-0.67

0.091

1.31

-0.113

-2.13

-0.033

-0.57

0.119

1.59

0.007

2.26

-0.022

-0.54

0.007

2.22

-0.024

-0.56

0.006

0.98

0.045

0.69

0.006

0.99

0.043

0.67

First-Stage Nr Instruments Cragg-Donald F-Stat Second-Stage Asset, Cohort Controls Village Dummies - FE R-Square Nr. Observations

2 23.11

Yes No 0.459

764 2 20.88

Yes No 0.452

764 2 12.83

Yes No 0.296

735 2 13.47

Yes No 0.285

735 2 10.74

Yes No 0.4822

764 2 10.7

Yes No 0.4734

764 2 8.58

Yes No 0.234

735 2 8.97

Yes No 0.217

735

Note: T-statistics reported. Bold coefficients indicate significance at the 10% level. First-Stage estimates not reported. Periods defined as [t=2004], [t-1=1995] and [t-2=1994]. Controls: HH Assets, Cohort dummies and HH demographic variables Lagged Endog IV, Village FE Growth: 1995-2004 IV: 1994 IV GMM (5a) IV GMM (5b) -0.063

-1.97

-0.065

-1.96

-0.019

-1.09

-0.037

-1.18

2 11.21

Yes Yes 0.5

764 2 11.1

Yes Yes 0.498

764

BREAD 2008 - 19

IW Outes-Leon Variables

Av. Food Cons. Growth, (t to t-1)/p Log Food Cons., t-1 Height (HH head) BMI (HH head), t-1 Low BMI (HH head), t-1 * Low BMI (HH share), t-1 Livestock (Index), t-1 Low Livestock, t-1 * Land (Hect. per AEq), t-1 Relative Land, t-1 Schooling (HH head), 1994 * Chronic health problem, 1994 * Rainfall Shock, t to t-1 Food Price Index (FPI), t-1 Price Shock (ΔFPI), t to t-1 Adult Illness Shock, t Livestock Shock, t ** Agricultural Shock, t ** Δ HH size, t to t-1 Δ Nr. Female members, t to t-1 Δ Nr. Children, t to t-1 HH size, t-1 Nr. Males Adult, t-1 Female share in HH, t-1 HH head Age, t-1

Nr Observations Al HHs (1)

0.0430

3.8006

167.3367

19.9525

0.2147

0.2155

2.6872

0.6505

0.3868

1.1116

0.4398

0.2160

-0.0432

120.4468

-5.6561

0.3704

-0.2497

-0.1770

-0.9908

-0.5131

-0.3639

6.6361

1.6950

0.4958

46.8261

764 High Cons. HHs (2)

-0.0139

4.4676

167.6845

20.1294

0.1414

0.1575

2.8906

0.5838

0.4985

1.1926

0.4869

0.1885

-0.0022

122.4427

-6.5490

0.3377

-0.2452

-0.1586

-0.5209

-0.2906

-0.0942

5.7827

1.4764

0.4996

44.8808

382 Low Cons. HHs (3)

0.0999

3.1335

166.9889

19.7757

0.2880

0.2735

2.4838

0.7173

0.2752

1.0307

0.3927

0.2435

-0.0842

118.4509

-4.7633

0.4031

-0.2542

-0.1954

-1.4607

-0.7356

-0.6335

7.4895

1.9136

0.4920

48.7663

382 Normal BMI (Head) (4)

0.0382

3.8865

167.1656

20.6267

0.0000

0.1031

2.7796

0.5872

0.4097

1.1319

0.4733

0.1800

-0.0296

121.0354

-6.1511

0.3367

-0.2588

-0.1692

-0.7633

-0.3983

-0.3383

6.4700

1.6000

0.4951

45.6156

600 Note: (*) Indicates dummy variables. (**) Index between (0) and ( 1), negative indicates a more serious shock. ‘High’ and ‘Low’ consumption HHs correspond with the top and bottom halves of the 1995 food consumption distribution. Variables used in the regressions models not reported here include: village asset means and decade-age dummies. Consumption growth variable is defined as the average growth between t and t-1, where p takes a value of nine years Low BMI (Head) (5)

0.0605

3.4863

167.9628

17.4860

1.0000

0.6268

2.3491

0.7166

0.3031

1.0377

0.3171

0.3476

-0.0929

118.2934

-3.8453

0.4939

-0.2168

-0.2056

-1.8232

-0.9329

-0.4573

7.2439

2.0427

0.4984

51.2472

164 BREAD 2008 - 20

Normal BMI - 1995 Low BMI - 1995 Nr Observations By Villages Haresaw Geblen Dinki Yetemen Shumsha Sirbana Godeti Adele Keke Korodegaga Trirufe Ketchema Imdibir Aze Deboa Adado Gara Godo Doma Milki Kormargefia Karafino Bokafia All villages IW Outes-Leon Low BMI (Head) 1995

No Yes

713

12.50% 8.33% 26.79% 10.26% 8.62% 15.91% 14.29% 34.55% 22.73% 81.82% 25.00% 10.00% 35.59% 22.22% 0.00% 16.00% 14.29% 16.67%

21.60% 1984 Drought Shock No Yes

286 52

338

273 102

375 1984-1994 Drought Shock No

244 44

288 Yes

315 110

425 Nr Observ.

559 154

713 Av. Food Aid Value (1984) Av. Food Aid Value (1984-1994)

677 Birr 446 Birr

707

2001 Birr 771 Birr

707 37.5% 83.3% 8.9% 66.7% 34.5% 95.5% 42.9% 25.5% 47.7% 15.2% 0.0% 100.0% 32.2% 42.2% 73.0% 84.0% 85.7% 91.7% 47.4%

62.5% 16.7% 91.1% 33.3% 65.5% 4.6% 57.1% 74.6% 52.3% 84.9% 100.0% 0.0% 67.8% 57.8% 27.0% 16.0% 14.3% 8.3%

52.6%

31.3% 83.3% 5.4% 33.3% 22.4% 88.6% 37.5% 18.2% 45.5% 15.2% 0.0% 100.0% 27.1% 20.0% 70.3% 80.0% 85.7% 91.7%

40.4%

68.8% 16.7% 94.6% 66.7% 77.6% 11.4% 62.5% 81.8% 54.6% 84.9% 100.0% 0.0% 72.9% 80.0% 29.7% 20.0% 14.3% 8.3%

59.6%

45 37 25 14 12

713

32 24 56 39 58 44 56 55 44 33 40 40 59 938 Birr 49 Birr 406 Birr 6,430 Birr 71 Birr 6 Birr 3 Birr 122 Birr 26 Birr 70 Birr 63 Birr -

627 Birr

4532 Birr 17,055 Birr 406 Birr 9,960 Birr 118 Birr 236 Birr 3 Birr 206 Birr 30 Birr 515 Birr 314 Birr -

1734 Birr

-

Note: Change in number of households from 713 to 707 is due to missing food aid information for 6 households. Pairs of columns (3)-(4) and (5)-(6) add to unity by village BREAD 2008 - 21

IW Outes-Leon Year 1995 Round Nr of Household Worse Drought – Vulnerability Module, 20 year recall period – Nr of Household – 2 nd Worse Drought 1994 Round – Vulnerability Module,10 year recall period Nr of Household – 3 rd Worse Drought Total Food Aid Value (in Birr) Nr of Households Total

1973 1974 1975 1976 1978 1979 1980 1981 1982 1983

1984

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 6 5 1 5 2 4 7 6 16 37

375 1 2 3 3 1 5 2 4 17 12 514

3 1 1 2 2 22 62 22 11 31 13 15 11 5 15 79 8

303

1 1 19 6 8 8 4 2 13 2 6 68 7

145

-

67,342 142,418 37,579 46,787 4,025 2,494 7,286 3,015 8,246 12,667 331,859

22 24 28 106

475 (*)

201 51 14 9 12 8

Note: Highlighted area indicates information used in the construction of the different sets of instruments. (*) Food aid totals reported include double-counting of households. That is, 201 households received food aid in 1984, but only a total of 371 different households received food aid at least once during the 1984 to 1994 period.

BREAD 2008 - 22

IW Outes-Leon Quartile Regressions, Endog: Low BMI (Head), 1995 Endog: Low BMI (Head), 1995 by Av. Consumption, 1994-1995 Consumption Growth 1995 to 2004 IV Fuller Quartile 1 Panel A - Standard Controls Low BMI (Head), t-1 -0.101

-2.71

[0.0023] 49.18

F-Stat (First-Stage) Panel B - Village Fixed Effects Low BMI (Head), t-1 -0.073

-1.91

[0.0556] F-Stat (First-Stage) Panel C – Consumption Quartiles by Village Low BMI (Head), t-1 30.85

-0.118

F-Stat (First-Stage) -2.72

[0.0013] 32.11

IV: Low BMI 1994 IV Fuller Quartile 2 IV Fuller Quartile 3

-0.046

-1.50

[0.1797]

26.94

-0.0298

-1.17

[0.4368]

21.13

-0.0499

-1.88

[0.0733] 52.61

0.0015

0.06

[0.9993]

36.13

-0.0064

-0.25

[0.8180]

33.28

-0.0682

-1.78

[0.0972] 22.03

IV Fuller Quartile 4 -0.0677

-1.74

[0.0848] 32.49

-0.0294

-0.81

[0.4603]

29.99

0.0107

0.36

[0.7445]

36.08

IV Fuller Quartile 1 -0.1756

-2.65

[0.0060] 8.35

-0.0448

-1.01

Undefined 1.87

-0.1249

-1.75

[0.0628]

9.85

IV: Drought 1984 IV Fuller Quartile 2 IV Fuller Quartile 3

-0.0373

-0.61

Undefined 3.65

-0.0156

-0.31

Undefined 1.94

-0.0193

-3.90

Undefined 0.01

-0.0112

-0.81

Undefined 0.05

0.0079

0.52

Undefined 0.01

0.0626

2.35

Undefined 0.15

IV Fuller Quartile 4

-0.0091

-0.34

Undefined -0.52

0.017

3.11

Undefined 0.01

0.0248

0.42

Undefined 2.56

Note: T-statistics reported. Coefficients highlighted in bold indicate significance at the 10% level. Moreira Conditional Likelihood Ratio (CLR) p-values reported in square brackets. ‘Undefined’ CLR p-value indicates that confidence intervals were unbounded. F-statistics reported in bold indicate the presence of ‘strong’ IVs. All regressions reported include same controls as in Slide D.2

BREAD 2008 - 23