The Estimation of Poverty Dynamics Using Different Measurements of Household Income
AbstractIf surveys offer two different measurements of household income, one can use them simultaneously to identify the potential effects of measurement error on the observed-income mobility of the poor. In this paper, the authors investigate transition tables between subsequent income states. Latent Markov models are used to model incorrect classifications of income states. Misclassifications are interpreted as measurement error or spurious changes that are not consistent with a simple transition table model. The empirical results for the German Socio-Economic Panel (GSOEP) show that the observed transition tables overestimate the mobility between poverty states. Copyright 1998 by The International Association for Research in Income and Wealth.
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Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income & Wealth.
Volume (Year): 44 (1998)
Issue (Month): 1 (March)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586
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- Jean-Yves Duclos & Abdelkrim Araar & John Giles, 2006.
"Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China,"
Cahiers de recherche
- Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
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- Ravallion, Martin, 2001.
"Measuring aggregate welfare in developing countries - How well do national accounts and surveys agree?,"
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- Martin Ravallion, 2003. "Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 645-652, August.
- Diana Worts & Amanda Sacker & Peggy McDonough, 2010. "Re-Assessing Poverty Dynamics and State Protections in Britain and the US: The Role of Measurement Error," Social Indicators Research, Springer, vol. 97(3), pages 419-438, July.
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