Table 4: Channels and robustness checks

||(1)|(2)|(3)|(4)|(5)|(6)|(7)|
|---|---|---|---|---|---|---|---|
|**Pan**|Agri. input<br>**el A: Heter**|Agri inc.<br>**ogeneous e**|Non-agri. inv. <br>**fects for pre**|Non-agri. inc.<br>**viously uncon**|Tot. inc.<br><br>**strained hous**|Outside labor <br>**eholds**|Migration|
|Clim. index x price<br>(lagged)|-.008<br>(.002)<sup>_∗∗∗_</sup>|-.005<br>(.005)|.004<br>(.003)|.003<br>(.001)<sup>_∗_</sup>|-.002<br>(.002)|.003<br>(.002)|.006<br>(.004)<sup>_∗_</sup>|
|Asset ownership int.|.004<br>(.002)<sup>_∗∗∗_</sup>|-.002<br>(.001)|-.004<br>(.005)|-.001<br>(.001)|-.002<br>(.0006)<sup>_∗∗∗_</sup>|.002<br>(.001)|-.002<br>(.0006)<sup>_∗∗∗_</sup>|
|_β_1+_β_2|-.004<br>(.003)|-.007<br>(.005)|.000<br>(.005)|.002<br>(.001)|-.004<br>(.002)<sup>_∗_</sup>|.005<br>(.003)|.004<br>(.004)|
|Obs.|15118|15118|15118|15118|15118|14672|10791|
||**Panel B: **|**Heterogen**|**eous efects **|**for high-inco**|**me households**|||
|Clim. index x price<br>(lagged)|-.007<br>(.001)<sup>_∗∗∗_</sup>|-.004<br>(.006)|.004<br>(.003)|.003<br>(.001)<sup>_∗_</sup>|-.001<br>(.003)|.003<br>(.002)|.006<br>(.003)<sup>_∗_</sup>|
|Top quantile int.|-.004<br>(.001)<sup>_∗∗∗_</sup>|-.004<br>(.003)|-.003<br>(.001)<sup>_∗∗_</sup>|-.001<br>(.0004)<sup>_∗∗_</sup>|-.003<br>(.000)|-.0004<br>(.001)|-.001<br>(.0008)<sup>_∗_</sup>|
|_β_1+_β_2|-.010<br>(.002)<sup>_∗∗∗_</sup>|-.008<br>(.006)|.001<br>(.003)|.002<br>(.001)|-.004<br>(.002)<sup>_∗∗_</sup>|.002<br>(.003)|.004<br>(.003)|
|Obs.|15118|15118|15118|15118|15118|14611|13290|
||**Panel C: **|**First stage**|**and two-sta**|**ge least squar**|**es, 1987–1993**|||
||Quota inc.|Agri. input|Agri inc.|Non agri. inv.|Non agri. inc.|Migration|Borrowing|
|Climatic index x price|.145<br>(.127)|||||||
|Quota income<br>(lagged)||-.085<br>(.134)|-.125<br>(.078)|-.073<br>(.106)|-.024<br>(.063)|.009<br>(.027)|.036<br>(.109)|
|Obs.|16749|16106|16749|16748|16749|16749|16749|

Notes: All specifications include village and province-year fixed effects, the interaction of the climatic index and a summary measure of market prices, climatic index quantile fixed effects interacted with the two year lagged market price, climatic quantile index fixed effects interacted with year fixed effects, and industrial quantile fixed effects interacted with year fixed effects. Standard errors are estimated employing two-way clustering at the province and year level. Standard errors are estimated employing two-way clustering at the province and year level. Asterisks indicate significance at the ten, five, and one percent level, respectively. The dependent variables are defined in the notes to Table S2.

In Panels A and B, the independent variables include the climatic index-price interaction (employing the weather-derived climatic index), and the triple interaction including a dummy variable for households already owning non-agricultural assets (in Panel A), or for a household identified as in the top income quantile pre-1993 (in Panel B). In Panels A and B, there are some cells defined by village, province-year and the dummy variable on the right hand side in which there is no variation in outside labor or migration; these cells are dropped, accounting for the lower number of observations. Additional controls include the non-agricultural assets dummy entering linearly in Panel A; and the high income dummy entering linearly in Panel B.

In Panel C, the first column shows the first stage, where the dependent variable is quota income; Columns (2) through (7) report the two-stage least squares specification for the subset of outcomes reported in the pre-1993 data.

Source: Data from the RCRE household panel analyzed by the author.

38