The impact of rainfall uncertainty (measured by inter-seasonal CV) on demand for credit
| Panel A: Inter-seasonal rainfall variability for meher season . | |||||
|---|---|---|---|---|---|
| Explanatory variables . | (1) . | (2) . | (3) . | (4) . | (5) . |
| CV for inter-seasonal | −0.278** | −0.309** | −0.325** | −0.316** | −0.326 |
| rainfall over 10 years | (0.122) | (0.131) | (0.134) | (0.130) | (0.216) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel B: Inter-seasonal rainfall variability for belg season | |||||
| CV for inter-seasonal | −0.178*** | −0.378*** | −0.375*** | −0.411*** | −0.251* |
| rainfall over 10 years | (0.067) | (0.105) | (0.107) | (0.102) | (0.136) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel A: Inter-seasonal rainfall variability for meher season . | |||||
|---|---|---|---|---|---|
| Explanatory variables . | (1) . | (2) . | (3) . | (4) . | (5) . |
| CV for inter-seasonal | −0.278** | −0.309** | −0.325** | −0.316** | −0.326 |
| rainfall over 10 years | (0.122) | (0.131) | (0.134) | (0.130) | (0.216) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel B: Inter-seasonal rainfall variability for belg season | |||||
| CV for inter-seasonal | −0.178*** | −0.378*** | −0.375*** | −0.411*** | −0.251* |
| rainfall over 10 years | (0.067) | (0.105) | (0.107) | (0.102) | (0.136) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
Notes: The dependent variable in this table is uptake of credit, which assumes a value of 1 for those households who took credit from formal sources and 0 for those not taking. Meher season is the main growing season in most part of Ethiopia and covers June–September. Belg rains fall from February to May, although only in parts of the highlands. Standard errors are clustered at enumeration area level and given in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01.
The impact of rainfall uncertainty (measured by inter-seasonal CV) on demand for credit
| Panel A: Inter-seasonal rainfall variability for meher season . | |||||
|---|---|---|---|---|---|
| Explanatory variables . | (1) . | (2) . | (3) . | (4) . | (5) . |
| CV for inter-seasonal | −0.278** | −0.309** | −0.325** | −0.316** | −0.326 |
| rainfall over 10 years | (0.122) | (0.131) | (0.134) | (0.130) | (0.216) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel B: Inter-seasonal rainfall variability for belg season | |||||
| CV for inter-seasonal | −0.178*** | −0.378*** | −0.375*** | −0.411*** | −0.251* |
| rainfall over 10 years | (0.067) | (0.105) | (0.107) | (0.102) | (0.136) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel A: Inter-seasonal rainfall variability for meher season . | |||||
|---|---|---|---|---|---|
| Explanatory variables . | (1) . | (2) . | (3) . | (4) . | (5) . |
| CV for inter-seasonal | −0.278** | −0.309** | −0.325** | −0.316** | −0.326 |
| rainfall over 10 years | (0.122) | (0.131) | (0.134) | (0.130) | (0.216) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
| Panel B: Inter-seasonal rainfall variability for belg season | |||||
| CV for inter-seasonal | −0.178*** | −0.378*** | −0.375*** | −0.411*** | −0.251* |
| rainfall over 10 years | (0.067) | (0.105) | (0.107) | (0.102) | (0.136) |
| Recent rainfall spell | No | Yes | Yes | Yes | Yes |
| Household characteristics | No | No | Yes | Yes | Yes |
| Household fixed effects | No | No | No | No | Yes |
| R-squared | 0.005 | 0.007 | 0.014 | 0.022 | 0.525 |
| Number of observations | 10,623 | 10,623 | 10,543 | 10,519 | 10,408 |
Notes: The dependent variable in this table is uptake of credit, which assumes a value of 1 for those households who took credit from formal sources and 0 for those not taking. Meher season is the main growing season in most part of Ethiopia and covers June–September. Belg rains fall from February to May, although only in parts of the highlands. Standard errors are clustered at enumeration area level and given in parentheses. *p < 0.10, **p < 0.05, ***p < 0.01.
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