МАГИСТЕРСКАЯ ДИССЕРТАЦИЯ MASTER THESIS

Тема: Salary volatility and risk choices: Evidence via Indonesia Name: Волатильность дохода и предпочтения к риску в Индонезии

Студент/ Pupil:

Будников Юрий Александрович as well as BudnikovYury Alexandrovich_ (Ф. И. О. студента, выполнившего работу)

Научный руководитель/ Аdvisor:

Associate professor of NES Paul Castaňeda Dower_ (ученая степень, звание, место работы, Ф. И. О. )

Оценка/ Grade:

Подпись/ Signature:

Москва 2010

Subjective In many expanding countries bumpy land division causes significant problems for even more development, and titling of landholdings may be very important for people and especially pertaining to farmers, but the connection between income and landholdings can be not noticed in the Indonesian data. I tried to make clear why titling of terrain may be minor for income of Indonesians. I created a risk preferences tale and determined income unpredictability measure and risk antipatia coefficients to get a possible explanation. Income unpredictability measure development was suggested in Shubham Chaudhuri, Jyotsna Jalan, and Asep Suryahadi (2002). To estimate risk aversion coefficients a model was constructed pertaining to cross-sectional data under many assumptions. It had been that salary volatility improves when the home becomes named. The unit is supposed to support the idea that it was caused by enhancements made on risk personal preferences of landholders. It can also support the discovering that titling of landholdings does not influence month to month income of Indonesian homeowners.

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Articles: 1 . Advantages.............................................................................................. …... installment payments on your Data …………………………………………………………………………. 3. Econometric model and results……………………………………………… some. Income volatility…………………………………………………………….. 5. Risk aversion coefficients…………………………………………………… 6. Plan implications ………………………………………………………….. 7. Conclusion…………………………………………………………………… 8. References……………………………………………………………………. 9. Appendix with tables………………………………………………………… 4 six 8 15 13 17 18 19 21

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1 . Launch There is a huge work done to assess what are the main determinants of household income in many countries in several years. It will help to understand principal goals of any economical policy that is considered to reduce poverty and also to increase people's wealth. The primary problem in many developing countries is that terrain is distributed unequally and poor people suffer. However , in the matter of Indonesia it appears not to be the most significant concern since I found that there is no direct relationship between total value of land held by people and home income. The response to the query why it occurs might concern risk preferences of people. An effort to elaborate about this was done in this term paper. Through this work I actually used an econometric version to understand if total land value is one of the basic determinants of household income of Indonesian people, tested many possible determinants that after bank checks appeared to be nonsignificant and tried to find precisely what is really important for people to understand the possible foreseeable future directions of economic policy of Indonesian government. It really is well known that poverty in Indonesia is rather high which work might help to understand what should be done to further improve their existence. One of the paperwork devoted to income determinants of households was of particular interest for me personally. It is Andre Croppenstedt (2006) where not only the basic determinants were identified, but it made an appearance that total value of landholdings is very an important determinant for home income in Egypt, the studied by author on this paper. Yet , at first it is important to introduce several paperwork on different classes of landholders to explain why it can be important to analyze the influence of landholdings on cash flow of people and exactly how risk preferences could be helpful to explain a few findings concerning this issue. In Jonathan Morduch (2005) the key...

References: 3) Stephen 3rd there�s r. Boucher, Bradford L. Barham, Michael L. Carter, " The impact of " marketfriendly" reforms about credit and land markets in Honduras and Nicaragua”, World Expansion, Volume 33, Issue one particular, pages 107-128 (2005);

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5) Jonathan Morduch, " The microfinance promise”, Log of Financial Literature, American Economic Affiliation, vol. 37(4), pages 1569-1614, (1999);

6) Andre Croppenstedt, " Home income framework and determinants in country Egypt”, ESA working newspaper n

7) Sybille McKeown, " Estimation for the family unit income and expenditure survey”, research paper (2004);

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9) Simon M Burgess and Carol Propper, " A fiscal Model of Household Income Characteristics, with a credit card applicatoin to Poverty Dynamics between American Women”, CASE newspaper (1998)

10) Saul Morris, Calogero Carletto, John Hoddinott, and Luc J