. Author manuscript; available in PMC: 2013 Oct 4.

Published in final edited form as: Forum Health Econ Policy. 2012 Oct 4;14(2):11. doi: 10.2202/1558-9544.1237

Table 2.

Effects of parent/household investments on child development – full specification^a

Panel A. OLS and 2SLS regression effects on development rate mean
OLS	3.65^{*** (0.6)}

	Area instrument	Area instrument with SES interaction	Caregiver availability instruments

2SLS	11.89^*** (3.63)	11.84^*** (3.55)	9.10^** (4.21) [1.64, 21.18]
F statistic	230.0^***	111.87^***	7.31^***
Over-identification chi-square (1) [p value]	-	0.068 [p=0.79]	0.34 [p=0.56]
Exogenous investment F (1,31)	5.33^**	5.43^**	1.68

Panel B. QR and IVQR effects on development rate quantiles
Quantile		Area instrument	Area instrument with SES interaction	Caregiver availability instruments

	QR	IVQR	QR	IVQR

0.1	4.90^*** (0.80)	14.23^*** (1.99)	14.04^*** (1.91)	14.1^** (5.65) [−5.93,33.66]
0.25	4.06^*** (0.58)	13.47^*** (1.87)	13.59^*** (1.83)	13.08^*** (3.26) [5.62,23.36]
0.5	3.10^*** (0.36)	11.69^*** (1.94)	11.07^*** (1.91)	6.94^* (4.07) [−2.06,42.94]
0.75	2.36^*** (0.39)	7.19^*** (2.23)	7.3^*** (2.12)	7.01^* (4.01) [−4.36,27.93]
0.9	2.08^*** (0.61)	4.54^** (2.28)	4.39^* (2.26)	9.2 (5.87) [−6.49,55.23]

Panel C. Marginal effects on development risk status
Probit	−0.072^*** (0.018)

		Area instrument	Area instrument with SES interaction	Caregiver availability instruments

IV Probit		−0.28^*** (0.051)	−0.28^*** (0.049)	−0.277^*** (0.109)
Exogenous investment chi-square (1)		19.19^***	21.12^***	3.03^*
Over-identification chi-square (1) [p value]			0.000 [0.991]	1.52 [0.22]

^{*, ** and ***}

indicate p <0.1, <0.05 and <0.01, respectively.

Standard errors are in parentheses. 95% confidence bounds for 2SLS and IVQR that are robust for weak instruments are included in brackets. Area instrument includes average investment at the child’s community level, calculated for each child, excluding the child’s own investment level. Area instrument with socioeconomic status (SES) interaction includes the average investment at the child’s community level (same as area instrument), as well as an interaction term with the SES index. Note that socioeconomic status index is included as a covariate in the model (both in the investment and child development functions).