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Do Adult Equivalence Scales Matter in Poverty Estimates? A Northern Ghana Case Study and Simulation

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  • Greg Regier
  • Yacob A. Zereyesus
  • Timothy J. Dalton
  • Vincent Amanor‐Boadu

Abstract

We test the sensitivity of per capita expenditures to several methods of per adult equivalent expenditures to control for economies of scale and household composition. Simulation analysis determines the indifference point between per capita expenditures and per adult equivalent measures in order to identify the factors contributing to the dominance of one measure over another. Results indicate that overall poverty and inequality measures in northern Ghana are highly sensitive to the use of equivalence scales. Poverty measures for children and the elderly and in urban and rural areas are also sensitive to equivalence scales. © 2018 John Wiley & Sons, Ltd.

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  • Greg Regier & Yacob A. Zereyesus & Timothy J. Dalton & Vincent Amanor‐Boadu, 2019. "Do Adult Equivalence Scales Matter in Poverty Estimates? A Northern Ghana Case Study and Simulation," Journal of International Development, John Wiley & Sons, Ltd., vol. 31(1), pages 80-100, January.
    • Handle: RePEc:wly:jintdv:v:31:y:2019:i:1:p:80-100
    DOI: 10.1002/jid.3394
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    Cited by:

    1. Kseniya Abanokova & Hai‐Anh H. Dang & Michael Lokshin, 2022. "Do Adjustments for Equivalence Scales Affect Poverty Dynamics? Evidence from the Russian Federation during 1994–2017," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 167-192, April.
    2. Macinko, James & Seixas, Brayan V. & de Oliveira, Cesar & Lima-Costa, Maria Fernanda, 2022. "Private health insurance, healthcare spending and utilization among older adults: Results from the Brazilian Longitudinal Study of Aging," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    3. Md. Matiur Rahman & Seung-Hoon Jeon & Kyoung-Soo Yoon, 2020. "Estimation of Equivalence Scale and Assessment of Its Impact on Poverty Measurement in Bangladesh," Sustainability, MDPI, vol. 12(21), pages 1-13, October.

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