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The Measurement Of Poverty With Geographical And Intertemporal Price Dispersion. Evidence From Rwanda

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  • Christophe Muller

    ()
    (Universidad de Alicante)

Abstract

It is not known to what extent welfare measures result from seasonal and geographical price differences rather than from differences in living standards across households. Using data from Rwanda in 1983, we show that the change in mean living standard indicators caused by local and seasonal price deflation is moderately significant at every quarter. By contrast, the differences in poverty measures caused by this deflation can be considerable, for chronic as well as transient or seasonal poverty indicators. Thus, poverty monitoring and anti-poverty targeting can be badly affected by inaccurate deflation of living standard data. Moreover, when measuring seasonal poverty, the deflation based on regional prices instead of local prices only partially corrects for spatial price dispersion. Using annual local prices instead of quarterly local prices only yields a partial deflation, which distorts the measure of poverty fluctuations across seasons and biases estimates of annual and chronic poverty.

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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-11.

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Length: 33 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2005-11

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Keywords: Measurement and Analysis of Poverty; Income Distribution; Personal Income Distribution;

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References

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Citations

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Cited by:
  1. Gibson, John & Kim, Bonggeun, 2013. "Do the urban poor face higher food prices? Evidence from Vietnam," Food Policy, Elsevier, vol. 41(C), pages 193-203.
  2. Christophe Muller, . "Anti-Poverty Transfers without Riots in Tunisia," Discussion Papers 07/06, University of Nottingham, CREDIT.
  3. Mussa, Richard, 2014. "Do the Poor Pay More for Maize in Malawi?," MPRA Paper 54623, University Library of Munich, Germany.
  4. Christophe Muller, 2005. "The Measurement Of Poverty With Geographical And Intertemporal Price Dispersion. Evidence From Rwanda," Working Papers. Serie AD 2005-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Arsène Kouadio & Vincent Monsan & Mamadou Gbongue, 2008. "Réformes de politique agricole et dynamique de la pauvreté alimentaire en Côte d'Ivoire/Agricultural Policy Reforms and Food Poverty Dynamics in Côte d'Ivoire," Working Papers PMMA 2008-07, PEP-PMMA.
  6. Carlos Maia & Servaas van der Berg, 2010. "When the remedy is worse than the disease: Adjusting survey income data for price differentials, with special reference to Mozambique," Working Papers 24/2010, Stellenbosch University, Department of Economics.

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