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

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Author Info
Gero Carletto (Agricultural and Development Economics Division, Food and Agriculture Organization)
Alberto Zezza (Agricultural and Development Economics Division, Food and Agriculture Organization)

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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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Publisher 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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Related research
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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Find related papers by JEL classification:
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
D60 - Microeconomics - - Welfare Economics - - - General

References listed on IDEAS
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!]
    Other versions:
  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.
    Other versions:
  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!]
    Other versions:
  5. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  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.
    Other versions:
  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.
    Other versions:
  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.
Full references

Cited by:
(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!]
    Other versions:
  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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