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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. Oswald, Andrew, 1997. "Happiness and Economic Performance," The Warwick Economics Research Paper Series (TWERPS) 478, University of Warwick, Department of Economics.
  2. Oded Stark & J. Taylor, 1989. "Relative deprivation and international migration oded stark," Demography, Springer, Springer, vol. 26(1), pages 1-14, February.
  3. Kapteyn, A.J., 1994. "The measurement of household cost functions: Revealed preference versus subjective measures," Discussion Paper, Tilburg University, Center for Economic Research 1994-3, Tilburg University, Center for Economic Research.
  4. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 105(433), pages 1415-34, November.
  5. Ravallion, Martin & Lokshin, Michael, 2000. "Identifying welfare effects from subjective questions," Policy Research Working Paper Series 2301, The World Bank.
  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. Kapteyn, Arie, 1994. "The Measurement of Household Cost Functions: Revealed Preference versus Subjective Measures," Journal of Population Economics, Springer, Springer, vol. 7(4), pages 333-50, November.
  8. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 106(5), pages 897-930, October.
  9. 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.
  10. 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..
  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. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
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Cited by:
  1. repec:ese:iserwp:2006-35 is not listed on IDEAS
  2. 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, Elsevier, vol. 33(2), pages 287-310, March.
  3. 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.
  4. Migotto, Mauro & Davis, Benjamin & Carletto, Gero & Beegle, Kathleen, 2006. "Measuring Food Security Using Respondents' Perception of Food Consumption Adequacy," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) RP2006/88, World Institute for Development Economic Research (UNU-WIDER).
  5. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.

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