Modeling poverty and its Determinants in Addis Ababa: A Focus on Multinomial Logit Selection Model

Course ID
Ethiopian Economics Association (EEA)
Abbi Mamo Kedir


I have used different econometric models (OLS, probit and multinomial logit selection) to analyses factors leading to poverty. The main emphasis of the study is to model determinants of standard of living in Addis Ababa using two-stage estimation technique. In the first step, a multinomial logit model is applied to distinguish between three socio-economic groups. The second stage regression, determinants of standard of living (i.e. total household expenditure per adult equivalent per month) are identified after incorporating the correction term for sample selectivity using the Lee-Heckman method. Among others, variables such as education, access to credit, employment status, gender, marital status and food shortage experience are significant determinants of welfare

Corporate Author:Ethiopian Economic Association/Ethiopian Economic Policy Research Institute (EEA/EEPRI)
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Poverty

Secondary Descriptor:Income distribution

Geographic Descriptors:Ethiopia, Addis Ababa
Cataloge Date:03/02/2013
Broad Subject heading:Economic assistance
Call Number:330.05 ETH JOU
Serial Key Title:Ethiopian Journal of Economics
Publication catagory:Ethiopian Journal of Economics
Content type:EEA Publication
Year:October, 1997
Publication date:1997-03-02 00:00:00
Forum or Discussion date:2013-03-02 00:00:00
PDF file: Abbi Mamo_ Modeling poverty and its Determinants in Addis Ababa.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Serial (Journal)
Current frequency:Semiannual
Author: Abbi Mamo Kedir