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Being poor, feeling poorer: Combining objective and subjective measures of welfare in Albania

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Gero Carletto
Alberto Zezza

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Abstract

In this paper we investigate how combining objective and subjective measures of welfare can enrich traditional poverty profiles by exploring the relationship between these welfare measures, and examining what explains the differences between the two. One important finding of our analysis (using data for Albania) is that reconciling subjective and objective poverty profiles suggests the presence of sizable economies of scale. This result calls for increased attention to the proper estimation of a scale parameter for poverty analysis, as changes in assumptions on economies of size and adult equivalence scales are likely to produce significant changes in the analysis of poverty and its distribution across households and individuals.

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Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 5 (July)
Pages: 739-760
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Handle: RePEc:taf:jdevst:v:42:y:2006:i:5:p:739-760

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Ravallion, Martin & Lokshin, Michael, 2000. "Identifying welfare effects from subjective questions," Policy Research Working Paper Series 2301, The World Bank. [Downloadable!]
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  2. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, vol. 46(8), pages 1453-1473, September. [Downloadable!] (restricted)
  3. Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers 178, Princeton, Woodrow Wilson School - Development Studies.
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  4. Angus Deaton & Christina Paxson, 1997. "Poverty Among Children And The Elderly In Developing Countries," Working Papers 992, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing.. [Downloadable!]
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  5. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
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  6. Jean O. Lanjouw & Peter Lanjouw & Branko Milanovic & Stefano Paternostro, 2004. "Relative price shifts, economies of scale and poverty during economic transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 509-536, 09. [Downloadable!] (restricted)
  7. Bruno S. Frey & Alois Stutzer, 2002. "What Can Economists Learn from Happiness Research?," Journal of Economic Literature, American Economic Association, vol. 40(2), pages 402-435, June.
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  8. Kapteyn, Arie, 1994. "The Measurement of Household Cost Functions: Revealed Preference versus Subjective Measures," Journal of Population Economics, Springer, vol. 7(4), pages 333-50, November.
  9. Hentschel, J. & Lanjouw, P., 1996. "Constructing an Indicator of Consumption for the Analysis of Poverty. Principles and Illustrations with Reference to Ecuador," Papers 127, World Bank - Living Standards Measurement.
  10. Lanjouw, Peter & Ravallion, Martin & DEC, 1994. "Poverty and household size," Policy Research Working Paper Series 1332, The World Bank. [Downloadable!]
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  11. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  12. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
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  13. Deaton, A. & Grosh, M., 1998. "Consumption," Papers 191, Princeton, Woodrow Wilson School - Development Studies.
  14. Gero Carletto & Benjamin Davis & Marco Stampini & Stefano Trento & Alberto Zezza, 2004. "Internal Mobility and International Migration in Albania," Working Papers 04-13, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
  15. Dreze, Jean & Srinivasan, P. V., 1997. "Widowhood and poverty in rural India: Some inferences from household survey data," Journal of Development Economics, Elsevier, vol. 54(2), pages 217-234, December. [Downloadable!] (restricted)
  16. Menno Pradhan & Martin Ravallion, 2000. "Measuring Poverty Using Qualitative Perceptions Of Consumption Adequacy," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 462-471, August. [Downloadable!] (restricted)
  17. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, Oxford University Press, vol. 8(1), pages 75-102, January.
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  18. Veall, Michael R & Zimmermann, Klaus F, 1996. " Pseudo-R-[superscript 2] Measures for Some Common Limited Dependent Variable Models," Journal of Economic Surveys, Blackwell Publishing, vol. 10(3), pages 241-59, September.
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carlo Azzarri & Gero Carletto & Benjamin Davis & Alberto Zezza, 2005. "Monitoring Poverty without Consumption Data: An application using the Albania panel survey," Working Papers 05-01, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA). [Downloadable!]
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  2. Valentina Zigante, 2008. "Ever Rising Expectations: the Determinants of Subjective Welfare in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 32(2), pages 115-138. [Downloadable!]
  3. repec:ese:iserwp: is not listed on IDEAS
  4. Migotto, Mauro & Davis, Benjamin & Carletto, Gero & Beegle, Kathleen, 2006. "Measuring Food Security Using Respondents' Perception of Food Consumption Adequacy," Working Papers RP2006/88, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
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