Determinants of the Food Consumption Vulnerability of the Extreme Poor -Empirical Evidence from Southern Bangladesh . AFEPA Master thesis Presentation on . By Mohammad Monirul Hasan Thesis supervisor: Prof . Dr. Imre Fertő CUB, Budapest August 6, 2013. Background of Study:.
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AFEPA Master thesis Presentation on
August 6, 2013
(1) Monthly income less than or equal to 3,000 Taka (equivalent to EUR 30) per household during lean period; or
(2) Primary occupation of the household head is daily wage earning (in farming, fishing, logging, honey collection or other activities); or
(3) Having less than or equal to 50 decimal cultivable land.
Any change in consumption caused by shocks to income (transitory income) could be smoothed sufficiently by perfect capital market borrowing as the household would try to maximize utility.
Household will borrow from market when it has transitory low income and by saving when having transitory high income. So consumption patterns of households are largely determined by the change in permanent income.
ρ is non-significant, Mills lambda is not significant. There is no selection biasness for microfinance participation explaining the vulnerability.
So we can directly use ordered Probit model to find the determinants of vulnerability.