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Indian Poverty during the 1990s: Resolving Methodological Issues from the 55th NSS Round

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Melanie Morten ()
Abstract

The fieldwork for the 61st National Sample Survey (NSS) has recently been completed and Indian poverty estimates for 2004/05 are currently being calculated. We revisit the debate over the 55th NSS round, which produced incomparable poverty estimates due to a change in the recall period used in the survey. The adjustment methods of Sundaram and Tendulkar (2003a; 2003b); Deaton (2003a and Drèze 2002); and Kijima and Lanjouw (2003) are analysed, and the underlying assumptions of each method are probed. We conclude that the use of the Employment/Unemployment surveys is not valid, reject the assumption of a stable Engel curve but cannot reject the assumption that returns to factors are constant. With the caveat that there has been no structural shift in the relationship between income and expenditure, we accept Kijima and Lanjouw's adjustment method. This implies that poverty reduction during the 1990s was considerably slower than prior to the 1991 economic reforms.

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Paper provided by Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2006-07.

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Length: 17
Date of creation: 2006
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Handle: RePEc:pas:asarcc:2006-07

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  1. Angus Deaton & Alessandro Tarozzi, 2000. "Prices and poverty in India," Working Papers 213, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies.. [Downloadable!]
  2. Alessandro Tarozzi, 2004. "Calculating Comparable Statistics from Incomparable Surveys, with an Application to Poverty in India," Econometric Society 2004 North American Winter Meetings 280, Econometric Society. [Downloadable!]
  3. Gaurav Datt & Martin Ravallion, 2002. "Is India's Economic Growth Leaving the Poor Behind?," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 89-108, Summer. [Downloadable!] (restricted)
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  4. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank. [Downloadable!]
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  5. Angus Deaton and Jean Drèze & Jean Drèze, 2002. "Poverty and Inequality in India: A Reexamination," Working papers 107, Centre for Development Economics, Delhi School of Economics. [Downloadable!]
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  6. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January. [Downloadable!] (restricted)
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