Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper studies the effect of electricity on income, using the Nepal Living Standards Survey-III (NLSSIII), carried out in the years 2010–11. To account for endogeneity issues, we use a Two Stage Probit Least Squares (2SPLS) model. We find that causality runs both ways. That is, income explains whether a household is connected to electricity, but also, a household being connected to electricity has a very large and significant effect on income.