Testing for Income Effects Using IFLS3 and IFLS4 Data
| Dependent Variable: | Risk-Tolerant IFLS4 1 | Risk-Tolerant IFLS4 2 | ||||
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | |
| Number of disasters (2001–2008) | −0.006 (0.003)** | −0.006 (0.002)** | −0.006 (0.003)** | −0.002 (0.001)** | −0.002 (0.001)** | −0.003 (0.001)** |
| Baseline wealth (2000) | −0.0002 (0.004) | 0.003 (0.004) | 0.0008 (0.002) | 0.002 (0.002) | ||
| Total assistance received (2001–2008) | 0.02 (0.007)** | 0.02 (0.006)** | 0.009 (0.006) | 0.009 (0.006) | ||
| Total amount lost (2001–2008) | −0.002 (0.001) | 0.0001 (0.001) | ||||
| Change in wealth (2000–2008) | −0.003 (0.006) | −0.003 (0.004) | ||||
| District fixed effects | Y | Y | Y | Y | Y | Y |
| Control variables | Y | Y | Y | Y | Y | Y |
| R2 | 0.06 | 0.07 | 0.07 | 0.04 | 0.04 | 0.04 |
| Observations | 4,150 | 4,150 | 4,150 | 4,150 | 4,150 | 4,150 |
↵Notes: We report results from OLS regressions where the dependent variable is risk-tolerant as measured by the hypothetical risk Game 1 from IFLS4 in Columns 1–3 (mean is 0.24), and as measured by the hypothetical risk Game 2 from IFLS4 data in Columns 4–6 (mean is 0.08). All specifications are clustered at the village level, include district level fixed effects, and controls for age, ethnicity, marital status, gender, and education. ***indicates significance at 1 percent level, ** at 5 percent level, * at 10 percent level.