Details
| Original language | English |
|---|---|
| Pages (from-to) | 218-226 |
| Number of pages | 9 |
| Journal | Ecological economics |
| Volume | 143 |
| Early online date | 26 Jul 2017 |
| Publication status | Published - Jan 2018 |
Abstract
Literature has consistently reiterated that the self-employed non-poor underreport their business income to tax authorities and in household surveys. In this work, we measure the extent to which poor households engaging in illegal environmental activities underreport income in Laos. We use a two year panel data and apply the Engel curve to detect and estimate the reporting gap. We further use a switching probit regression to identify the factors of income underreporting and its impact on income poverty outcomes. Results show that on an average, rural households who earn at least a quarter of their income from the environment underreport by over 50% in household surveys resulting in overestimation of income poverty. Moreover, we find that a perceived threat to food security drives rural poor to engage in illegal environmental extraction.
Keywords
- Engel curve, Household surveys, Income underreporting, Poverty, Switching probit model
ASJC Scopus subject areas
- Environmental Science(all)
- General Environmental Science
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
Sustainable Development Goals
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In: Ecological economics, Vol. 143, 01.2018, p. 218-226.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Is Environmental Income Reporting Evasive in Household Surveys?
T2 - Evidence From Rural Poor in Laos
AU - Parvathi, Priyanka
AU - Nguyen, Trung Thanh
N1 - Publisher Copyright: © 2017 Elsevier B.V. Copyright: Copyright 2017 Elsevier B.V., All rights reserved.
PY - 2018/1
Y1 - 2018/1
N2 - Literature has consistently reiterated that the self-employed non-poor underreport their business income to tax authorities and in household surveys. In this work, we measure the extent to which poor households engaging in illegal environmental activities underreport income in Laos. We use a two year panel data and apply the Engel curve to detect and estimate the reporting gap. We further use a switching probit regression to identify the factors of income underreporting and its impact on income poverty outcomes. Results show that on an average, rural households who earn at least a quarter of their income from the environment underreport by over 50% in household surveys resulting in overestimation of income poverty. Moreover, we find that a perceived threat to food security drives rural poor to engage in illegal environmental extraction.
AB - Literature has consistently reiterated that the self-employed non-poor underreport their business income to tax authorities and in household surveys. In this work, we measure the extent to which poor households engaging in illegal environmental activities underreport income in Laos. We use a two year panel data and apply the Engel curve to detect and estimate the reporting gap. We further use a switching probit regression to identify the factors of income underreporting and its impact on income poverty outcomes. Results show that on an average, rural households who earn at least a quarter of their income from the environment underreport by over 50% in household surveys resulting in overestimation of income poverty. Moreover, we find that a perceived threat to food security drives rural poor to engage in illegal environmental extraction.
KW - Engel curve
KW - Household surveys
KW - Income underreporting
KW - Poverty
KW - Switching probit model
UR - http://www.scopus.com/inward/record.url?scp=85025808229&partnerID=8YFLogxK
U2 - 10.1016/j.ecolecon.2017.07.022
DO - 10.1016/j.ecolecon.2017.07.022
M3 - Article
AN - SCOPUS:85025808229
VL - 143
SP - 218
EP - 226
JO - Ecological economics
JF - Ecological economics
SN - 0921-8009
ER -