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Poverty comparisons with non-compatible data: theory and illustrations

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Author Info
Lanjouw, Jean Olson
Lanjouw, Peter

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Abstract

Comparisons of poverty rates are only rarely based on identical underlying definitions of welfare. The authors examine the sensitivity of poverty rates calculated from alternative definitions of consumption. They consider what theory can say about the direction of bias in comparisons and show that under certain conditions robust comparisons are possible. Data from Ecuador, El Salvador, and Pakistan show that the magnitude of biases can be substantial. Their robustness result is used as a baseline to explore the tradeoffs involved in aggregating noisy expenditure components. Although nonfood expenditures are often thought to be especially poorly measured, the authors'data indicate that the more comprehensive is the measure of consumption spending, the better it is as a measure of welfare.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1709.

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Date of creation: 31 Jan 1997
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Handle: RePEc:wbk:wbrwps:1709

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Keywords: Public Health Promotion; Environmental Economics&Policies; Poverty Reduction Strategies; Health Economics&Finance; Services&Transfers to Poor; Poverty Reduction Strategies; Achieving Shared Growth; Poverty Assessment; Environmental Economics&Policies; Poverty Lines;

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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. Deininger, K & Squire, L, 1996. "Measuring Income Inequality : A New Data-Base," Papers 537, Harvard - Institute for International Development.
  2. Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-82, December. [Downloadable!] (restricted)
  3. Ravallion, Martin, 1994. "Poverty rankings using noisy data on living standards," Economics Letters, Elsevier, vol. 45(4), pages 481-485, August. [Downloadable!] (restricted)
  4. Atkinson, Anthony B, 1991. "Comparing Poverty Rates Internationally: Lessons from Recent Studies in Developed Countries," World Bank Economic Review, Oxford University Press, vol. 5(1), pages 3-21, January.
  5. John Dreze & Peter Lanjouw & Nicholas Stern, 1992. "Economic Mobility and Agricultural Labour in Rural India: A Case Study," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27, pages 25-54.
  6. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July. [Downloadable!] (restricted)
  7. 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.
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  8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
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  1. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Cortes, 2002. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Economics Working Papers (Ensaios Economicos da EPGE) 444, Graduate School of Economics, Getulio Vargas Foundation (Brazil). [Downloadable!]
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  2. Lanjouw, Peter & Milanovic, Branko & Paternostro, Stefano, 1998. "Poverty and the economic transition : how do changes in economies of scale affect poverty rates for different households?," Policy Research Working Paper Series 2009, The World Bank. [Downloadable!]
  3. Schady, Norbert & Rosero, Jose, 2007. "Are cash transfers made to women spent like other sources of income?," Policy Research Working Paper Series 4282, The World Bank. [Downloadable!]
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  4. Hentschel, Jesko & Lanjouw, Jean Olson & Lanjouw, Peter & Poggi, Javier, 1998. "Combining census and survey data to study spatial dimensions of poverty," Policy Research Working Paper Series 1928, The World Bank. [Downloadable!]
  5. Jean-Pierre Lachaud, 1998. "La pauvreté en Mauritanie : une approche multidimensionnelle," Documents de travail 31, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  6. Lanjouw, Peter, 1998. "Ecuador's rural nonfarm sector as a route out of poverty," Policy Research Working Paper Series 1904, The World Bank. [Downloadable!]
  7. Francisco H.G. Ferreira & Peter Lanjouw & Marcelo Neri, 2001. "A New Poverty Profile For Brazil Using PPV, PNAD And Census Data," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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