Essays: Regression Analysis and Robust Poverty Profile

Topics: Regression analysis, Poverty, Household income in the United States Pages: 146 (37934 words) Published: August 27, 2013
ESSAYS ON POVERTY, MICROFINANCE AND LABOR ECONOMICS by SANDARADURA INDUNIL UDAYANGA DE SILVA, B.Sc., M.A. A DISSERTATION IN ECONOMICS Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of DOCTOR OF PHILOSOPHY Approved Masha Rahnama Chairperson of the Committee

Thomas Steinmeier Robert McComb

Accepted John Borrelli
Dean of the Graduate School

August, 2006

Copyright 2006, Sandaradura Indunil Udayanga De Silva

ACKNOWLEDGEMENTS I would like to extend my gratitude and thanks to my dissertation committee chair, Dr. Masha Rahnama, for his guidance throughout my work. I also wish to extend my sincere gratitude to other members of my committee, Dr. Thomas Steinmeier and Dr. Robert McComb for their helpful comments, discussion and guidance. Deep appreciation goes to my parents. Without their encouragement, devotion and sacrifices, my education would not have reached this level. Finally, I owe a debt of gratitude to Dr. Joseph King, Chairman of the Department of Economics at Texas Tech University, for providing continuous encouragement during my Ph.D. studies.

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TABLE OF CONTENTS

ACKNOWLEDGEMENTS………………………………………………… ii LIST OF TABLES………………………………………………………... LIST OF FIGURES……………………………………………………….. CHAPTER 1. INTRODUCTION………………………………………... …… 2. A ROBUST POVERTY PROFILE FOR SRI LANKA IN A MULTIVARIATE FRAMEWORK……………………… 2.1 Introduction…………………………………………….. 4 4 1 v vii

2.2 Data and Methodology………………………………….. 5 2.3 Unconditional Poverty Profile: Cross Tabulations……… 6 2.4 Conditional Poverty Profile: Marginal Effects………….. 14 2.5 Conclusion………………………………………………. 24 3. EVALUATING THE IMPACT OF MICROFINANCE ON SAVINGS AND INCOME: QUASI-EXPERIMENTAL APPROACH USING PROPENSITY SCORE MATCHING…… 34 3.1 Introduction………………………………………………. 34 3.2 Microfinance Institutions and Impact Studies……………. 37 3.3 Econometric Methodology and Data……………………... 53 3.4 Results…………………………………………………….. 66

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3.5 Conclusion………………………………………………… 71 4. RETURNS TO EDUCATION IN SRI LANKA: QUANTILE REGRESSION ANALYSIS………………………… 103 4.1 Introduction……………………………………………… 103 4.2 Human Capital Framework, Signaling and the Returns To Schooling…………………………………………….. 4.3 Econometric Methodology………………………………. 4.4 Empirical Results………………………………………… 4.5 Conclusion……………………………………………….. 105 111 114 118

REFERENCES………………………………………………………. 134

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LIST OF TABLES

2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Unconditional Poverty Profile (cross tabulations)…………………… Inequality Indices……………………………………………………. Variable definitions and means……………………………………… Logit regression estimates…………………………………………… Quantile and OLS regression estimates…………………………….... Social Transfers and social expenditure,1999……………………….. Income Transfer Component…………………………………………

26 27 28 29 30 73 74

Bottom 20th percentile probit model for the propensity score………. 75 20th-40th percentile probit model for the propensity score…………… 40th-60th percentile probit model for the propensity score…………… 60th-80th percentile probit model for the propensity score…………… 80th-100th percentile probit model for the propensity score………….. Matching quality indicators (covariate balancing) for the 20th percentile……………………………………………………. 80 76 77 78 79

3.9

Matching quality indicators (covariate balancing) for the 20th-40th percentile……………………………………………….. 83

3.10

Matching quality indicators (covariate balancing) for the 40th-60th percentile………………………………………………. 86

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LIST OF TABLES 3.11 Matching quality indicators (covariate balancing) for the 60th-80th percentile……………………………………………….. 89 3.12 Matching quality indicators (covariate balancing) for the 80th-100th percentile……………………………………………… 3.13 3.14 3.15 4.1 4.2 4.3 4.4 4.5 4.6 4.7 Individuals lost due to common support requirement……………….. 92 95

Impact of microfinance on household savings……………………….. 96 Impact of microfinance on household income………………………… 97 Cross Country...

References: 137
Jenkins, Stephen P, and Peter J Lambert (1997)
140
Siddhisena, K.A.P, and Jayathilaka, M.D.R.K (2004)
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