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Reconciliation of income and consumption data in poverty measurement

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  • Richard Bavier

    (Office of Management and Budget, Washington, DC)

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    Abstract

    A recent series of papers has renewed interest in the question of whether consumption data are superior to income data for poverty measurement. Although the Census Bureau has provided researchers with an experimental series of variables that can produce a comprehensive income measure, this resource has not been fully exploited in previous analyses. When poverty is measured by a comprehensive income measure, income poverty rates and trends are similar to consumption poverty rates. Arguments that income is measured with more error than consumption at the bottom of the distribution are shown to be based upon inferior income data. © 2008 by the Association for Public Policy Analysis and Management.

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    File URL: http://hdl.handle.net/10.1002/pam.20306
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Journal of Policy Analysis and Management.

    Volume (Year): 27 (2008)
    Issue (Month): 1 ()
    Pages: 40-62

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    Handle: RePEc:wly:jpamgt:v:27:y:2008:i:1:p:40-62

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    Web page: http://www3.interscience.wiley.com/journal/34787/home

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    1. Christopher Jencks & Susan E. Mayer, . "Do Official Poverty Rates Provide Useful Information about Trends in Children's Economic Welfare?," IPR working papers 96-1, Institute for Policy Resarch at Northwestern University.
    2. Jonathan Fisher, 2006. "Income Imputation and the Analysis of Expenditure Data in the Consumer Expenditure Survey," Working Papers 394, U.S. Bureau of Labor Statistics.
    3. Kerwin Kofi Charles & Sheldon Danziger & Geng Li & Robert F. Schoeni, 2006. "Studying consumption with the Panel Study of Income Dynamics: comparisons with the Consumer Expenditure Survey and an application to the intergenerational transmission of well-being," Finance and Economics Discussion Series 2007-16, Board of Governors of the Federal Reserve System (U.S.).
    4. David M. Cutler & Lawrence F. Katz, 1991. "Macroeconomic Performance and the Disadvantaged," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 1-74.
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    Cited by:
    1. Alessandra Michelangeli & Eugenio Peluso & Alain Trannoy, 2011. "Detecting a change in wealth concentration without the knowledge of the wealth distribution," Journal of Economic Inequality, Springer, vol. 9(3), pages 373-391, September.
    2. Maharjan, Keshav Lall & Joshi, Niraj Prakash, 2009. "Relationship between Income-poverty and Food insecurity in Rural Far-western Mid-hills of Nepal," 2009 Conference, August 16-22, 2009, Beijing, China 51462, International Association of Agricultural Economists.
    3. Kenneth A. Couch & Maureen A. Pirog, 2010. "Poverty measurement in the U.S., Europe, and developing countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 217-226.
    4. Mike Brewer & Cormac O'Dea, 2012. "Measuring living standards with income and consumption: evidence from the UK," IFS Working Papers W12/12, Institute for Fiscal Studies.
    5. repec:ese:iserwp:2012-05 is not listed on IDEAS

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