Table 2

Participation and Transaction Decisions

VariableParticipationTransactions
Pr(Rent In)Pr(Rent Out)Rent InRent Out
Flood × postyear0.0460.0290.314**0.339
(0.060)(0.055)(0.144)(0.250)
Storm × postyear0.0470.0210.1320.335**
(0.049)(0.039)(0.101)(0.133)
Age0.0050.0020.021**0.025*
(0.005)(0.003)(0.010)(0.013)
Family size0.003−0.0030.056*0.001
(0.011)(0.009)(0.030)(0.036)
Landholding−0.267***0.501***−0.904***1.103***
(0.073)(0.088)(0.198)(0.287)
Education0.004−0.0000.020**−0.021
(0.004)(0.003)(0.010)(0.016)
Extension0.091***−0.0010.205***0.047
(0.026)(0.022)(0.054)(0.136)
Subsidy0.044*−0.0190.0800.024
(0.023)(0.021)(0.067)(0.101)
Transportation0.026*0.0150.085**0.060
(0.014)(0.014)(0.038)(0.048)
Finance0.0140.003−0.042−0.023
(0.016)(0.015)(0.044)(0.069)
Tractor0.079*−0.0530.207***−0.097
(0.043)(0.035)(0.075)(0.185)
Idiosyncratic shocks x postyear0.0130.0200.0320.126
(0.020)(0.017)(0.067)(0.078)
Rainfall deviation−0.0000.0000.001−0.001
(0.000)(0.000)(0.001)(0.001)
Rainfall deviation x postyear0.000−0.0010.001−0.001
(0.001)(0.000)(0.001)(0.002)
Constant0.1390.043−2.245***−3.153***
(0.229)(0.151)(0.502)(0.606)
Observations9,5789,5784,7982,986
R-squared/pseudo R-squared0.7770.8020.2140.309
HH fixed effectYesYesYesYes
Year fixed effectYesYesYesYes
  • Note: Robust standard errors clustered at the union level are shown in parentheses. The results for participation choices are from linear probability model regressions with two-way fixed effects according to specification [5]; the results for rental transactions are from Poisson pseudo-maximum likelihood regressions with two-way fixed effects according to specification [6]. Outcome and explanatory variables follow the definitions in Table 3. All monetary values are expressed in thousands of US$ in purchasing power parity terms at the rates 26.61 and 21.87 Bangladeshi taka for Bangladesh Integrated Household Survey data set rounds 1 and 2, respectively. All land measures are expressed in hectares, where 100 decimals = 1 acre = 0.405 ha.

  • * p < 0.1;

  • ** p < 0.05;

  • *** p < 0.01.