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Being Poor, Feeling Poorer: Combining objective and subjective measures of welfare in Albania

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  • Gero Carletto

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Alberto Zezza

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

As shown empirically for many transition economies, even small 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. Since such exercises are then used to orient and prioritize policy actions (e.g. the targeting of scarce social assistance resources) it is important to refine our understanding of the extent to which poverty measures and the resulting profiles are sensitive to specific assumptions. In this paper we investigate how combining objective and subjective measures of welfare can provide insights that are helpful in addressing these questions, particularly with respect to the presence of economies of scale in consumption.

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Bibliographic Info

Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 04-12.

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Length: 31 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:fao:wpaper:0412

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Keywords: Albania; Development policies; Economic development; Economic dualism; Economic systems; Income; Informal sector; Living standards; Mathematical models; Poverty; Rural development; Social change; Social conditions; Social policies; Social welfare; Socioec;

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References

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  1. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-34, November.
  2. Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers 178, Princeton, Woodrow Wilson School - Development Studies.
  3. Oded Stark & J. Taylor, 1989. "Relative deprivation and international migration oded stark," Demography, Springer, vol. 26(1), pages 1-14, February.
  4. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Open Access publications from Tilburg University urn:nbn:nl:ui:12-364386, Tilburg University.
  5. Deaton, A. & Paxson, C., 1997. "Poverty Among Children and the Eldrely in Developing Countries," Papers 179, Princeton, Woodrow Wilson School - Development Studies.
  6. 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.
  7. Ravallion, Martin & Lokshin, Michael, 2001. "Identifying Welfare Effects from Subjective Questions," Economica, London School of Economics and Political Science, vol. 68(271), pages 335-57, August.
  8. Oswald, A.J., 1997. "Happiness and Economic Performance," Papers 18, Centre for Economic Performance & Institute of Economics.
  9. 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.
  10. Veall, Michael R & Zimmermann, Klaus F, 1996. " Pseudo-R-[superscript 2] Measures for Some Common Limited Dependent Variable Models," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 241-59, September.
  11. 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.
  12. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Discussion Paper 1994-3, Tilburg University, Center for Economic Research.
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Citations

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Cited by:
  1. Ravallion, Martin & Himelein, Kristen & Beegle, Kathleen, 2013. "Can subjective questions on economic welfare be trusted ? evidence for three developing countries," Policy Research Working Paper Series 6726, The World Bank.
  2. Mauro Migotto & Benjamin Davis & Gero Carletto & Kathleen Beegle, 2005. "Measuring Food Security Using Respondents’ Perception of Food Consumption Adequacy," Working Papers 05-10, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  3. repec:ese:iserwp:2006-35 is not listed on IDEAS
  4. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.
  5. Labeaga, José M. & Molina, José Alberto & Navarro, María, 2011. "Deprivation using satisfaction measures in Spain: An evaluation of unemployment benefits," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 287-310, March.

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