Income Volatility and Risk Preferences: Evidence from Indonesia
МАГИСТЕРСКАЯ ДИССЕРТАЦИЯ MASTER THESIS
Тема: Income volatility and risk preferences: Evidence from Indonesia Title: Волатильность дохода и предпочтения к риску в Индонезии
Студент/ Student:
Будников Юрий Александрович / BudnikovYury Alexandrovich_ (Ф.И.О. студента, выполнившего работу)
Научный руководитель/ Аdvisor:
Assistant professor of NES Paul Castaňeda Dower_ (ученая степень, звание, место работы, Ф.И.О.)
Оценка/ Grade:
Подпись/ Signature:
Москва 2010
Abstract In many developing countries unequal land distribution causes significant problems for further development, and titling of landholdings may be very important for people and especially for farmers, but the connection between income and landholdings is not observed in the Indonesian data. I tried to explain why titling of land may be insignificant for income of Indonesians. I developed a risk preferences story and calculated income volatility measure and risk aversion coefficients to provide a possible explanation. Income volatility measure construction was proposed in Shubham Chaudhuri, Jyotsna Jalan, and Asep Suryahadi (2002). To estimate risk aversion coefficients a model was constructed for cross-sectional data under several assumptions. It turned out that income volatility increases when the household becomes titled. The model is supposed to support the idea that it was caused by change in risk preferences of landholders. It can also support the finding that titling of landholdings does not influence monthly income of Indonesian households.
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Contents: 1. Introduction..............................................................................................…... 2. Data …………………………………………………………………………. 3. Econometric model and results……………………………………………… 4. Income volatility…………………………………………………………….. 5. Risk aversion coefficients…………………………………………………… 6. Policy implications ………………………………………………………….. 7. Conclusion…………………………………………………………………… 8.
Тема: Income volatility and risk preferences: Evidence from Indonesia Title: Волатильность дохода и предпочтения к риску в Индонезии
Студент/ Student:
Будников Юрий Александрович / BudnikovYury Alexandrovich_ (Ф.И.О. студента, выполнившего работу)
Научный руководитель/ Аdvisor:
Assistant professor of NES Paul Castaňeda Dower_ (ученая степень, звание, место работы, Ф.И.О.)
Оценка/ Grade:
Подпись/ Signature:
Москва 2010
Abstract In many developing countries unequal land distribution causes significant problems for further development, and titling of landholdings may be very important for people and especially for farmers, but the connection between income and landholdings is not observed in the Indonesian data. I tried to explain why titling of land may be insignificant for income of Indonesians. I developed a risk preferences story and calculated income volatility measure and risk aversion coefficients to provide a possible explanation. Income volatility measure construction was proposed in Shubham Chaudhuri, Jyotsna Jalan, and Asep Suryahadi (2002). To estimate risk aversion coefficients a model was constructed for cross-sectional data under several assumptions. It turned out that income volatility increases when the household becomes titled. The model is supposed to support the idea that it was caused by change in risk preferences of landholders. It can also support the finding that titling of landholdings does not influence monthly income of Indonesian households.
2
Contents: 1. Introduction..............................................................................................…... 2. Data …………………………………………………………………………. 3. Econometric model and results……………………………………………… 4. Income volatility…………………………………………………………….. 5. Risk aversion coefficients…………………………………………………… 6. Policy implications ………………………………………………………….. 7. Conclusion…………………………………………………………………… 8.
References: 3) Stephen R. Boucher, Bradford L. Barham, Michael R. Carter, “The impact of "marketfriendly" reforms on credit and land markets in Honduras and Nicaragua”, World Development, Volume 33, Issue 1, pages 107-128 (2005); 4) P.S 5) Jonathan Morduch, “The microfinance promise”, Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, (1999); 6) Andre Croppenstedt, “Household income structure and determinants in rural Egypt”, ESA working paper n 7) Sybille McKeown, “Estimation for the household income and expenditure survey”, research paper (2004); 8) G 9) Simon M Burgess and Carol Propper, “An Economic Model of Household Income Dynamics, with an Application to Poverty Dynamics among American Women”, CASE paper (1998) 10) Saul Morris, Calogero Carletto, John Hoddinott, and Luc J