Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines

Christian Mina () and Katsushi Imai ()

No DP2016-16, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: Using the panel data for the Philippines in 2003-2009, we estimate a three-level random coefficient model to measure household vulnerability and to decompose it into idiosyncratic and covariate components. We correct heterogeneity bias using Bell and Jones’s (2015) ‘within-between’ formulation. A majority of the poor and 18 percent of the non-poor are found to be vulnerable to unobservable shocks, while both groups of households are more susceptible to idiosyncratic shocks than to covariate shocks. Adequate safety nets should be provided for vulnerable households that lack access to infrastructure, or are larger in size with more dependents and less-educated heads. The JEL codes: C23, I32, O15 Key Words: Vulnerability, Poverty, Multilevel Model, Panel Data,

Keywords: Vulnerability; Poverty; Multilevel model; Panel data; The Philippines (search for similar items in EconPapers)
JEL-codes: C23 I32 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-dev and nep-sea
Date: 2016-03, Revised 2016-11
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http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2016-16.pdf Revised version, 2016 (application/pdf)

Related works:
Working Paper: Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines (2016)
Working Paper: Estimation of Vulnerability to Poverty Using a Multilevel Longitudinal Model: Evidence from the Philippines (2015)
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