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Equivalence Scale and Poverty Assessment in a Poor Country

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  • Balisacan, Arsenio M.

Abstract

Mainly due to the dearth of available data, this article empirically illustrates that the practice of using household expenditures/incomes in assessing aggregate poverty tends to its overestimation. In the absence of reliable equivalence estimates, household size should be normalized to improve the estimation results.

Suggested Citation

  • Balisacan, Arsenio M., 1992. "Equivalence Scale and Poverty Assessment in a Poor Country," Philippine Journal of Development JPD 1992 Vol. XIX No. 1-c, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:pjdevt:jpd_1992_vol__xix_no__1-c
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    References listed on IDEAS

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    1. Lewbel, Arthur, 1991. "Cost of characteristics indices and household equivalence scales," European Economic Review, Elsevier, vol. 35(6), pages 1277-1293, August.
    2. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    3. Tsakloglou, Panos, 1991. "Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children," Economic Journal, Royal Economic Society, vol. 101(405), pages 343-357, March.
    4. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Callan, Tim & Nolan, Brian, 1991. "Concepts of Poverty and the Poverty Line," Journal of Economic Surveys, Wiley Blackwell, vol. 5(3), pages 243-261.
    7. Franklin M. Fisher, 1987. "Household Equivalence Scales and Interpersonal Comparisons," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 519-524.
    8. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    9. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-221, May.
    10. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
    11. Pashardes, Panos, 1991. "Contemporaneous and intertemporal child costs : Equivalent expenditure vs. equivalent income scales," Journal of Public Economics, Elsevier, vol. 45(2), pages 191-213, July.
    12. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    13. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
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    Cited by:

    1. John Paolo Rosales Rivera, 2022. "A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 242-267, September.

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    Keywords

    poverty; econometric modeling;

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