Consumption growth and spatial poverty traps: an analysis of the effect of social services and community infrastructures on living standards in rural Peru

Philippe De Vreyer, Javier Herrera () and Sandrine Mesplé-Somps

No 124, Ibero America Institute for Econ. Research (IAI) Discussion Papers from Ibero-America Institute for Economic Research

Abstract: We 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.

JEL-codes: C33 H23 I18 I32 I38 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2005-10-21
New Economics Papers: this item is included in nep-dev, nep-geo, nep-hrm, nep-pbe and nep-soc
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Consumption Growth and Spatial Poverty Traps: An Analysis of the Effect of Social Services and Community Infrastructures on Living Standards in Rural Peru (2009)
Working Paper: Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:got:iaidps:124

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