Determinants of shock-coping mechanisms adoption and rural household consumption in Rwanda: A two-stage analysis considering both idiosyncratic and covariate shocks

Figures & data

Table 1. Shocks and coping strategies typology

Type of shocks		Definition
Covariate shocks
	Weather shocks	Irregular rains, drought, Floods, prolonged dry spells, landslides, mudslides
	Epidemic shocks	An abnormally elevated incidence of human illnesses
Idiosyncratic shocks
	Agricultural shocks	Unusually high levels of crop pests & diseases, livestock diseases, prices for food, and cost of agricultural inputs seed, fertilizer, etc.
	Health shocks	Serious illness or accident of household member, and the passing away of the household-head
	Economic shocks	The decrease or loss of employment or income for a member of the household.
Others		Fires, Not Specified

Source: Authors’ categorization of shocks.

Table

Coping strategies	Definition
Selling durable assets	Sold unproductive assets such as furniture, radio, television, refrigerator, and jewelry, Sold productive assets or means of transport like a sewing machine, bicycle, car, wheelbarrow, house or land, an animal like cow …
Reducing expenditure	Decreased spending on food, lower essential expenses on healthcare and education.
Used up savings	Depletion of savings
Borrowings	Took out a loan from a formal financial institution, and borrowed funds from an unofficial moneylender.
Migration	Certain members of the household relocated to seek employment, or the entire household moved to another location.
Others	Resorted to begging, withdrew a child from school, degrading sources of income, high-risk jobs or illegal work, other non-specified

Source: Authors’ categorization of coping strategies.

Table 2. Proportions of shocks faced by households versus coping strategies

Shock experienced	Coping strategy
	Selling durable assets	Reducing expenditure	Used up savings	Borrowings	Migration	Others	Total
Covariate	20.73	34.37	6.03	12.69	2.19	23.99	100
Idiosyncratic	25.91	24.52	12.87	19.76	2.37	14.57	100
Not specified	25.54	1.8	6.94	20.97	2.75	33	100
Total	22.5	3.14	8.03	15.2	2.27	21.86	100

Table 3. Descriptive statistics (n = 4782)

Variable	Unit	Low			Medium			High
		Mean	Std. Err.	%	Mean	Std. Err.	%	Mean	Std. Err.	%
Household Level
Household-head(HH) features
Sex: female, male	Cat.	-	-	10.21, 28.98	-	-	10.88, 31.39	-	-	5.58, 12.96
Age	Cont.	45.41	0.023		47.28	0.026		49.89	0.043
Household(H)features
Children (Aged, less than 16)	Cont.	2.7	0.002	-	1.95	0.002	-	1.18	0.003	-
Education, with secondary	Cont.	0.19	0.0009	-	0.4	0.0012	-	0.64	0.002	-
Employment features (Members in H)
Employed in the private farm	Cont.	1.81	0.001	-	1.68	0.001	-	1.33	0.002	-
Employed in private non-farm	Cont.	0.39	0.001	-	0.45	0.001	-	0.49	0.001	-
Employed in public	Cont.	0.015	0.0002	-	0.016	0.0002	-	0.05	0.0006	-
Ownership features (Total number)
Land(farmland owned within an H)	Cont.	1.1	0.0005	-	1.08	0.0004	-	1.11	0.0008	-
Cattles	Cont.	0.24	0.0009	-	0.62	0.003	-	1.05	0.008	-
Goats	Cont.	0.47	0.001	-	0.83	0.002	-	1.03	0.005	-
Pigs	Cont.	0.16	0.0008	-	0.2	0.0009	-	0.33	0.003	-
Shocks type (as the first shock an H experienced)
Covariate shocks	Cat.	-	-	26.13	-	-	28.51	-	-	10.89
Idiosyncratic shocks	Cat.	-	-	10.97	-	-	11.13	-	-	6.31
Not specified	Cat.	-	-	2.09	-	-	2.65	-	-	1.34
Region (village) level
Distance to market	Cont.	58.24	0.05	-	58.12	0.05	-	54.88	0.08	-

NB: Cat. denotes categorical, and Cont. denotes continuous, Region (1-Kigali rural, 2-Southern rural, 3-Western rural, 4-Northern rural, and 5-Eastern rural)

Source: Author’s computations using Integrated Household Living Conditions Survey (EICV-5).

Table 4. Household and shock-coping features explaining coping strategies adoption

Dependent variable
	Selling durable assets	Used up savings	Borrowings	Migration	Others
Medium	28.93***	57.48***	11.33***	86.72***	29.91***
	(38.79)	(29.40)	(26.09)	(21.24)	(40.52)
High	2.184***	22.74***	0.858	2.202**	0.171***
	(7.12)	(21.08)	(−1.30)	(3.07)	(−15.53)
Female	0.566***	1.071***	1.120***	0.911***	1.101***
	(−42.77)	(3.49)	(8.43)	(−3.56)	(8.48)
Female*M	1.098***	.825***	0.768***	3.077***	0.986
	(5.17)	(−7.33)	(−14.00)	(27.90)	(−0.85)
Female*H	1.934***	.924**	0.815***	3.228***	1.202***
	(28.65)	(−2.68)	(−8.16)	(21.81)	(8.25)
Age	1.013***	.994***	1.002***	0.978***	1.002***
	(32.95)	(−8.88)	(3.93)	(−24.07)	(5.04)
Age*M	0.976***	.995***	0.987***	0.998	0.983***
	(−47.05)	(−6.08)	(−22.38)	(−1.78)	(−33.01)
Age*H	1.001	1.011***	0.992***	1.005***	1.015***
	(1.26)	(12.43)	(−11.75)	(3.36)	(22.79)
Children (Aged, less than 16)	1.172***	1.017**	1.008	0.948***	0.976***
	(42.09)	(2.60)	(1.85)	(−6.54)	(−6.58)
Children *M	0.997	1.126***	1.139***	1.001	1.000
	(−0.48)	(14.17)	(21.29)	(0.07)	(−0.06)
Children *H	0.921***	1.016	0.817***	1.441***	0.926***
	(−11.15)	(1.62)	(−22.95)	(21.30)	(−8.66)
Secondary level of education	1.306***	1.471***	1.235***	0.515***	1.022*
	(28.91)	(3.11)	(19.92)	(−18.03)	(2.17)
Secondary*M	0.786***	.679***	0.861***	1.044	0.903***
	(−21.67)	(−25.08)	(−11.93)	(0.90)	(−8.52)
Secondary*H	0.789***	.705***	0.931***	1.307***	0.892***
	(−19.31)	(−22.47)	(−5.29)	(5.52)	(−8.21)
Employed in the private farm	0.964***	.963***	0.941***	1.059***	1.069***
	(−7.36)	(−4.52)	(−10.40)	(4.92)	(13.79)
Private farm*M	0.964***	1.124***	1.072***	0.812***	1.001
	(−5.10)	(1.78)	(8.55)	(−10.23)	(0.20)
Private farm*H	1.240***	1.155***	1.313***	0.680***	1.068***
	(20.98)	(11.20)	(23.36)	(−11.36)	(5.82)
Employed in private non-farm	0.927***	1.039**	1.049***	0.773***	0.947***
	(−9.12)	(3.02)	(5.26)	(−12.56)	(−6.76)
Private non-farm*M	0.929***	1.039*	0.720***	0.617***	0.824***
	(−6.72)	(2.41)	(−26.09)	(−13.42)	(−16.78)
Private non-farm*H	1.009	1.004	0.999	0.995	0.759***
	(0.64)	(.22)	(−0.04)	(−0.14)	(−16.37)
Employed in public	0.569***	1.176***	0.786***	1.080	0.667***
	(−14.06)	(3.60)	(−5.88)	(0.97)	(−10.72)
Public*M	0.885	2.413***	2.104***	2.94e-08	3.876***
	(−1.93)	(14.60)	(13.29)	(−0.02)	(26.33)
Public*H	1.833***	1.140*	0.605***	2.37e-08	2.051***
	(12.04)	(2.39)	(−8.35)	(−0.03)	(14.30)
Land	0.652***	.248***	1.119***	1.428***	2.168***
	(−21.62)	(−3.14)	(6.10)	(11.74)	(54.07)
Land*M	0.633***	2.658***	0.581***	0.310***	0.554***
	(−16.14)	(18.23)	(−19.90)	(−17.38)	(−27.50)
Land*H	1.128***	1.706***	0.301***	1.347***	1.006
	(3.67)	(9.52)	(−33.10)	(5.15)	(0.23)
Cattle	1.155***	1.243***	1.185***	0.518***	0.824***
	(17.32)	(17.02)	(17.62)	(−21.32)	(−19.75)
Cattle*M	0.925***	.834***	0.834***	1.538***	0.827***
	(−9.11)	(−13.77)	(−17.74)	(11.41)	(−15.77)
Cattle*H	0.908***	.803***	0.729***	1.267***	0.989
	(−11.21)	(−16.71)	(−27.45)	(5.50)	(−0.89)
Goats	1.115***	1.015	0.967***	1.003	0.942***
	(25.35)	(1.94)	(−6.02)	(0.28)	(−12.31)
Goats*M	1.116***	1.124***	1.143***	1.114***	1.007
	(20.20)	(13.05)	(19.35)	(7.26)	(1.08)
Goats*H	1.183***	1.208***	1.391***	1.390***	1.365***
	(26.24)	(2.44)	(44.09)	(23.77)	(43.23)
Pigs	0.951***	.884***	1.003	1.127***	0.908***
	(−5.43)	(−7.80)	(0.28)	(6.49)	(−9.72)
Pigs*M	0.954***	1.166***	0.766***	1.083**	1.148***
	(−3.73)	(8.04)	(−17.09)	(3.03)	(10.21)
Pigs*H	1.113***	1.434***	0.770***	0.269***	1.118***
	(8.12)	(19.79)	(−15.15)	(−16.04)	(7.35)
Idiosyncratic	1.912***	3.790***	1.930***	1.684***	0.775***
	(58.39)	(78.89)	(53.61)	(22.62)	(−22.07)
Idiosyncratic*M	1.253***	.928***	1.590***	1.097*	1.233***
	(14.42)	(−3.32)	(27.11)	(2.46)	(12.24)
Idiosyncratic*H	0.999	.677***	1.175***	0.443***	1.208***
	(−0.05)	(−16.07)	(7.54)	(−15.80)	(8.81)
Distance to market	1.019***	1.066***	0.981***	1.020***	1.015***
	(20.55)	(42.44)	(−19.81)	(10.95)	(17.54)
Distance to market*M	0.975***	.923***	0.978***	0.942***	0.966***
	(−19.66)	(−4.99)	(−15.86)	(−19.16)	(−27.24)
Distance to market*H	0.974***	.942***	1.027***	0.967***	1.005**
	(−16.79)	(−28.51)	(15.15)	(−8.93)	(3.29)

Exponentiated coefficients; t statistics in parentheses * p<0.05 ** p<0.01 *** p<0.001

LR chi2(220) 175590.7

Prob > chi20

Pseudo R2 0.0618

Log restricted-likelihood −1331936

Table 5. Household and shock-coping features explaining household expenditure

	Food expenditure	Non-food expenditure	Total expenditure
Male*Idiosyncratic	.136	.147	−.0210
	(1.07)	(.76)	(−.20)
Female*covariate	−.182***	−.252***	−.0978***
	(−6.60)	(−5.99)	(−4.28)
Female*Idiosyncratic	−.181	−.108	−.199
	(−1.40)	(−.55)	(−1.85)
Age* covariate	−.00186*	−.00518***	.000123
	(−2.30)	(−4.18)	(.18)
Age*Idiosyncratic	−.00208	−.00730***	.000550
	(−1.84)	(−4.22)	(.59)
Children*covariate	.0977***	.0930***	−.150***
	(11.68)	(7.31)	(−21.53)
Children*Idiosyncratic	.0840***	.0890***	−.161***
	(6.87)	(4.77)	(−15.79)
Education*covariate	.204***	.359***	.130***
	(13.26)	(15.31)	(1.18)
Education*Idiosyncratic	.200***	.332***	.138***
	(9.62)	(1.54)	(8.03)
Private farm*covariate	.0861***	.121***	−.109***
	(7.46)	(6.82)	(−11.36)
Private farm*Idiosyncratic	.0847***	.131***	−.104***
	(4.93)	(5.05)	(−7.33)
Private non-farm*covariate	.214***	.232***	−.00475
	(11.74)	(8.36)	(−.31)
Private non-farm*Idiosyncratic	.214***	.217***	−.0321
	(8.50)	(5.67)	(−1.54)
Public*covariate	.222**	.118	.0628
	(3.07)	(1.08)	(1.05)
Public*Idiosyncratic	−.0122	.285*	.0567
	(−.14)	(2.15)	(.78)
Land*covariate	−.0356	−.230***	−.118***
	(−.85)	(−3.58)	(−3.37)
Land*Idiosyncratic	−.00200	−.271***	−.0203
	(−.04)	(−3.30)	(−.45)
Cattle*covariate	.00948	.0610***	.0307***
	(1.73)	(7.31)	(6.73)
Cattle*Idiosyncratic	.0489**	.146***	.103***
	(2.70)	(5.30)	(6.82)
Goats*covariate	.0305***	.102***	.0367***
	(4.48)	(9.82)	(6.47)
Goats*Idiosyncratic	.0260*	.0597***	.0291**
	(2.33)	(3.52)	(3.14)
Pigs*covariate	.0555***	.0483*	.0500***
	(3.91)	(2.24)	(4.24)
Pigs*Idiosyncratic	.0324	.0825	.0169
	(1.12)	(1.87)	(.70)
Covariate*Reducing expenditure	.0545*	−.0523	.0175
	(2.36)	(−1.49)	(.91)
Idiosyncratic*Other coping strategies	−.0533	.0951	−.0415
	(−1.38)	(1.63)	(−1.30)
Constant	12.41***	1.11***	12.63***
	(88.84)	(83.52)	(175.17)
lns1_1_1
Constant	−14.97	−6.194***	−14.64
	(−1.71)	(−14.02)	(−1.60)
lns1_1_2
Constant	−1.320***	−8.689	−2.415***
	(−3.60)	(−.72)	(−5.65)
lnsig_e
Constant	−.510***	−.0923***	−.694***
	(−49.63)	(−8.63)	(−67.58)
N	4771	4753	4782

t statistics in parentheses * p<0.05 ** p<0.01 *** p<0.001