File2-page94 - A / n ) as picking up own price effect...

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Burgess (2004) Asset Redistribution x P c ¯ A = x P c y · y ¯ A + x P c ˜ p c · ˜ p c ¯ A Empirical Test ln ( x c / n ) = α + β ln ( x / n )+ ζ ln ( A / n ) + η ln ( n )+ J 1 j = 1 γ j p n j n P + K 1 k = 1 k p n k n + δ z + u P we want to look at effect of access to land ( A / n ) on calorie consumption ( x c / n ) ) Exploit non-market allocation of land in China allow us to separate out in- come and land effects – typically not possible in market economies where jointly determined speciFcation builds directly on standard calorie demand equation from Subramanian and Deaton (1996) control for overall effect income (including that coming through land) by including total per capita expenditure variable ( x / n ) then interpret coefFcient on land (
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Unformatted text preview: A / n ) as picking up own price effect Finding 1: income exerts a positive and signiFcant effect on calorie con-sumption see columns (1) and (4) of Table 5: conFrmation of Subrama-nian and Deaton (1996) Fnding Finding 2: controlling for income still see large effect of land ? evidence of own price effect and that we are in imperfect food market setting see columns (2) and (5) of Table 5 in line with Result (2) conFrmed Development Economics, LSE Summer School 2007 91...
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