Econometrics

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Browsing Econometrics by Author "Alemu, Tekie (PhD)"

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    Analysis of Households’ Preferences For improved Solid Waste Management in Adama Town: Application of Choice Modeling
    (Addis Ababa University, 2010-11) Berihun, Yonas; Alemu, Tekie (PhD)
    In recent years, the generation of solid waste is increasing in Adama town due to rapid urbanization and population growth. Currently, out of the total waste generated in the town about 50-60 % is properly collected and disposed. The remaining amount of the waste is disposed on open spaces, streets and drainage channels along roadsides of the town. This uncollected solid waste in many places of the town may have serious adverse effect on public health and environmental quality. Moreover, the formal dumpsite, located some 8 km away from the center of the town, does not appear to have proper measures to control runoffs from rain fall. Thus, conducting a study on the demand for improved solid waste collection and disposal services is essential. The principal objective of this study is to analyze households’ preferences for improved solid waste management in Adama town. Different solid waste management options are defined by the service attributes of frequency of waste collection from households, separation of waste at source, pollution control measures at the dumpsite and monthly service charge. The study employed the choice modeling technique, which is a stated preference method for the valuation of non-marketed environmental goods and services. The survey was administered on a random sample of 188 households in the town. The data was analyzed using Multinomial Logit and Random Parameter Logit models. The results of the study revealed that improvement in the levels of all the non-monetary attributes of the service increase the utility of respondents. In addition, households with higher monthly total income, larger family size, as well as respondents with higher levels of education favor the improved plans of solid waste management more frequently. Furthermore, households have a positive willingness to pay for improvement in the level of each non-monetary attribute. In conclusion, households in Adama town are willing to pay for improved solid waste collection and disposal services. The implication is that any policy directed towards the provision of effective solid waste management in the town should incorporate demand side information.
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    Determinants of Gross Domestic Saving: An Empirical Evidence From east Africa
    (Addis Ababa University, 2016-06) Gmichael, Weldemariam; Alemu, Tekie (PhD)
    The objective of this paper was to investigate the determinants of gross domestic saving in the Ethiopia, Kenya, Mozambique, Rwanda, Tanzania, and Uganda using annual panel datasets form 1991-2012.In this study, effort has been made to identify the fundamental determinants of domestic saving in the region of East Africa using the Fixed Effects (FE) model. Estimated results revealed that GDP per capita growth (gdpp) and degree of urbanization (urb) are the only significant determinants of gross domestic saving in the region. However, inflation rate, working age group as a percentage of total population (py), age dependency ratio to working age (agedp), money and quasi money as a percentage of GDP (m2), and government expenditure as a percentage of GDP (ggov) are found to be not statistically significant at the conventional levels. It seems fairly imperative to suggest that governments should give amplified concern for GDP per capita growth and degree of urbanization more than other candidates if they are in a position to design policies for the sake of boosting up domestic savings. On the other hand, this in turn, may be boosting up sustainable economic growth through encouraging investment over the region of interest. Key Words: Lifecycle/Permanent-income theory; gross domestic saving; panel data, fixed effects; East Africa
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    The Relationship between Inflation and Economic Growth in Ethiopia
    (Addis Ababa University, 2008-06) Michael, Yemane; Alemu, Tekie (PhD)
    It is widely believed that moderate and stable inflation rates promote the development process of a country, and hence economic growth. Moderate inflation supplements the return to savers, enhances investment, and therefore, accelerates economic growth of the country. This paper empirically explores the present relationship between inflation and economic growth in the context of Ethiopia. Using annual date set on real GDP and CPI as well as other variables, for the period 1971 to 2006, an assessment of the empirical evidence has been acquired through the co-integration and error correlation models. Furthermore, it explores an interesting policy issue of what is the threshold level of inflation for the economy. The empirical evidence demonstrates that there exists a statistically significant long-run negative relationship between inflation and economic growth for Ethiopia as indicated by a statistically significant long-run negative relationship between CPI and real GDP. In addition, the estimated threshold model suggests 16 percent as the threshold level (i.e., structural breakpoint) of inflation above which inflation adversely affects economic growth. These results have important policy implications for both domestic policy makers and the development partners working in the country.