**<u>Table 7: Impact of certification on propensity and magnitude of investment in soil & water conservation: marginal effects</u>**

||**Repairs an**<br>**mon**|**d new investm**<br>**ths: porbit mo**|**ent last 12**<br>**dels**<br>**Chamberlai**<br>**n**|**Hours spent**<br>**last 1**|**on repairs and**<br>**2 months: tobit**|**new investment**<br>**models**<sup>a</sup><br>**Chamberlain**|
|---|---|---|---|---|---|---|
|Land use certificates issued|0.268***|0.302***|0.291***|1.279***|1.439***|1.347***|
||(9.92)|(10.70)|(10.32)|(9.90)|(10.79)|(10.11)|
|Parcel size in hectares|0.019|0.057***|0.061***|0.205*|0.496***|0.523***|
||(1.26)|(3.58)|(3.80)|(1.84)|(4.05)|(4.32)|
|Number of years possessed|-0.000|0.001|0.000|0.007*|0.011***|0.009**|
||(-0.08)|(1.14)|(0.61)|(1.88)|(2.94)|(2.38)|
|Good soil quality|-0.014|-0.013|-0.013|-0.073|-0.051|-0.056|
||(-1.18)|(-1.14)|(-1.15)|(-0.82)|(-0.58)|(-0.64)|
|Medium soil quality|-0.013|-0.012|-0.013|-0.090|-0.085|-0.098|
||(-1.18)|(-1.17)|(-1.23)|(-1.06)|(-1.01)|(-1.19)|
|Flat land|-0.129***|-0.121***|-0.121***|-1.075***|-1.023***|-1.002***|
||(-6.02)|(-5.92)|(-5.89)|(-8.44)|(-8.14)|(-8.09)|
|Gently sloped land|<br>-0.025|<br>-0.025*|<br>-0.023|<br>-0.261**|<br>-0.245**|<br>-0.213*|
||(-1.54)|(-1.69)|(-1.57)|(-2.20)|(-2.09)|(-1.84)|
|Irrigated land|<br>0.017|<br>0.019|<br>0.019|<br>0.101|<br>0.091|<br>0.087|
||(0.72)|(0.86)|(0.83)|(0.60)|(0.55)|(0.53)|
|Total owned land in hectares||<br>-0.058***|<br>-0.062***||<br>-0.335***|<br>-0.357***|
|||(-6.81)|(-7.24)||(-6.53)|(-7.06)|
|Value of livestock x 10<sup>-3</sup>(Birr)||-0.003*|-0.003*||-0.017*|-0.012|
|||(-1.91)|(-1.86)||(-1.86)|(-1.01)|
|Corrugated iron roof||0.017|-0.035||0.122|-0.355*|
|||(0.92)|(-1.21)||(0.98)|(-1.91)|
|Number of dependents||0.009<br>|0.024***<br>||0.089***<br>|0.248***<br>|
|||(1.41)|(2.59)||(2.61)|(3.78)|
|Number of adult male||<br>0.013|<br>0.015||<br>0.080*|<br>0.038|
|||(1.62)|(1.26)||(1.76)|(0.42)|
|Number of adult female||<br>0.001|<br>0.018*||<br>-0.032|<br>0.093|
|||(0.17)|(1.66)||(-0.68)|(1.16)|
|Age of household head (years)||0.006|0.007||0.055**|0.038|
|||(1.38)|(1.50)||(2.32)|(1.54)|
|Age of household head squared||<br>-0.000*|<br>-0.000***||<br>-0.001***|<br>-0.001***|
|||(-1.65)|(-2.65)||(-2.64)|(-3.04)|
|Female headed household||-0.042**|0.068||-0.458***|0.510*|
|||(-2.05)|(1.47)||(-3.14)|(1.77)|
|Head can read and write||-0.010|0.010||-0.093|0.061|
|||(-0.67)|(0.56)||(-0.97)|(0.46)|
|Year = 2007|-0.067***|-0.065***|-0.053***|-0.350***|-0.357***|-0.260***|
||(-6.08)|(-5.63)|(-4.41)|(-4.56)|(-4.45)|(-2.93)|
|Number of observations|8671|8671|8671|8671|8671|8671|
|Number of households|856|856|856|856|856|856|
|Log likelihood|-3662.079|-3625.047|-3596.866|-9747.794|-9713.545|-9686.255|
|<br>Chi-squared|294.122|348.923|387.019|293.521|361.972|419.962|
|<br>Rho|0.672|0.656|0.647|0.619|0.603|0.594|
|sigma_u|1.432|1.380|1.354|7.439|7.175|7.023|
|Lik.-ratio test of rho=0<br>|-4760.517|-4613.590|-4555.439||||
|Chibar<sup>2</sup>|2196.876|1977.085|1917.145||||

**Note:** The Chamberlain specification includes the mean value of the time-varying household level variables (Chamberlain 1980), coefficients for which are not reported. A constant term is included in all the regressions. Absolute value of t statistics in parentheses; * significant at 10%; ** significant at 5%; *** significant at 1%. aThe dependent variable is log((number of hours spent on repairs and new investment last 12 months + 0.01)/0.01).

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