O.A.M.D.G.

||Fixed asset defin|ition (1)|Fixed asset d|efinition (2)|Fixed asset de|finition (1)|Fixed asset d|efinition (2)|||
|---|---|---|---|---|---|---|---|---|---|---|
||**Coeff**|**z-stat**|**Coeff**|**z-stat**|**Coeff**|**z-stat**|**Coeff**|**z-stat**|**Coeff**||
|**Dependent Variable**|**Fixed Assets**||||**Mobile Assets**||||**Debt**||
|_Violence_|||||||||||
|public order problem|638,513<br>-<br>*|1.47<br>-<br>-|724,637<br>|*<br>1.81<br>-|154,496|**<br>2.32|126,481|**<br>2.31<br>-|131,352<br>||
|guerrilla attack rate|6,186|0.11<br>-|6,649<br>|0.14<br>-|1,722|0.22|21,997|0.54|13,087||
|<br>homicide rate|3,854|1.34|3,512|1.30<br>|601<br>-|1.43<br>-|848|-0.78<br>-|501<br>||
|_Municipality controls_|||||||||||
|grouped settlement|35,373<br>-|0.12<br>-<br>-|599,277<br>|**<br>2.42<br>-|48,789|0.79|116,764|***<br>4.85<br>-|23,267<br>||
|<br>rural sparse settlement|617,101<br>-|1.17<br>-<br>-|739,554<br>|*<br>1.46<br>-|54,514|0.56|123,856|1.38|29,764||
|Oriental Region|2,406,933<br>**|*<br>3.45|1,936,905|***<br>3.16<br>|27,679<br>-|0.25<br>-|217,592|*<br>1.83|241,508|**|
|Central Region|1,748,623<br>**|2.35|1,826,948|***<br>2.59|471,512|***<br>4.64|173,312|**<br>2.37|235,482||
|<br>Pacific Region|168,410|0.33|378,194|0.75|102,217|1.19|124,770|-0.63<br>-|151,905<br>||
|<br>altitude|272<br>-|0.27<br>-<br>-|179<br>|0.19<br>-<br>|237<br>-|*<br>1.63<br>-|245|*<br>-1.67|111||
|altitude2|0|0.33|0|0.30|0|1.33|0|1.09|0||
|percentage of people in lowest two strata|528,271<br>-|0.49<br>-<br>-|190,712<br>|0.19<br>-|316,483|*<br>1.93|307,492|0.01|176,605||
|index of quality of life|2,150<br>-|0.03<br>-|11,345|0.19|5,205|0.49|17,498|-0.47<br>-|12,388<br>||
|capture rate|503|1.20|568|1.40<br>|95<br>-|1.22<br>-|122|-1.31|66||
|_Household/ head variables_|||||||||||
|age|80,142|1.35|68,621|1.26|22,616|***<br>2.69|15,283|***<br>2.71|43,961|***|
|age2|294|0.47|350|0.61<br>|220<br>-|***<br>2.69<br>-|147|**<br>-2.34<br>-|405<br>|***|
|married|944,904<br>**|*<br>3.80|840,481|***<br>3.58|97,920|*<br>1.81|89,772|**<br>2.04|430,584|***|
|female|349,135<br>-<br>*|1.55<br>-<br>-|100,430<br>|0.47<br>-<br>|245,439<br>-|***<br>5.61<br>-|68,722|***<br>-6.75<br>-|69,438<br>|*|
|some or complete primary education|204,025<br>-|1.07<br>-<br>-|163,390<br>|0.93<br>-|85,817|**<br>1.98|88,340|0.55|73,021|*|
|some secondary or more education|704,969<br>**|2.22|631,702|**<br>2.09|427,190|***<br>4.34|128,194|***<br>3.87|548,460|***|
|Inverted Mills Ratio|3,853,922<br>-<br>*|1.69<br>-<br>-|2,900,246<br>|1.32<br>-|627,837|0.65|1,294,539|-0.18<br>-|1,159,224<br>|***|
|constant|5,426,227|1.34|3,440,779|0.85<br>|1,386,398<br>-|0.91<br>-|2,036,264|0.13|1,213,651|**|
|Wald test Inverted Mills Ratio (p value)|0.10||0.19||0.52||0.86||0||
|Wald test violence variables (p value)|0.38||0.26||0.12||0.12||0.39||
|Wald test welfare indicators (p value)|0.89||0.95||0.16||0.89||0.48||
|Wald test access of the state (p value)|0||0||0.0001||0||0.001||
|Adj R2|0.05||0.05||0.03||0.04||0.04||
|Number of obs|7,248||7468||7410||7,202||7,439||

# Results-Table 2: Coefficient estimates from a seemingly unrelated regression of fixed and mobile assets and the debt of Colombian households

_Note: Dependent variables are valued fixed assets, valued mobile assets, and debt, respectively. The first and the third columns use the asset definition (1) of Table 2, the second and the fourth asset definition (2) of Table 3. Regressions are OLS, in a SUR system. Standard errors are robust, adjusted for clustering on municipality._ _Default household education level is ‘none’. Default region is Atlantic, default rurality degree is ‘urban’. Stars mark significance at the 10% (*), 5% (**) and 1% (***) levels._ _The Wald-tests (chi2) examine joint significance of groups of variables, in this order of the violence variables: public order problem, attack rate, homicide rate; of the welfare indicators: the index of quality of life and the share of population in the lowest two income sixtiles; of the variables indicating access of the state: rurality, region, altitude, and capture rate, respectively._ The results largely confirm our conceptual framework, and are qualitatively robust to different asset definitions.<sup>33</sup> In the regressions for fixed and mobile assets, all violence variables have the sign predicted by our model, irrespective of the asset specification

> 33 They are also robust to excluding municipalities with very high violence levels as outliers, and different specifications, including consumption and employment status at the household level or excluding the capture rate (results not shown).

31