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Robustness of subjective welfare analysis in a poor developing country - Madagascar 2001

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Author Info

  • Lokshin, Michael
  • Umapathi, Nithin
  • Paternostro, Stefano

Abstract

The authors analyze the subjective perceptions of poverty in Madagascar in 2001 and their relationship to objective poverty indicators. They base their analysis on survey responses to a series of subjective perception questions. The authors extend the existing empirical methodology for estimating subjective poverty lines on the basis of categorical consumption adequacy questions. Based on this methodology they calculate the household-specific, subjective poverty lines and compare the poverty profiles derived from different subjective welfarequestions. The results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on objective poverty lines. The subjective welfare analysis can be used in poor developing countries for evaluating socioeconomic and distributional impacts of various policy interventions.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3191.

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Date of creation: 15 Jan 2004
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Handle: RePEc:wbk:wbrwps:3191

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Keywords: Public Health Promotion; Health Monitoring&Evaluation; Health Economics&Finance; Environmental Economics&Policies; Poverty Reduction Strategies; Poverty Assessment; Poverty Lines; Environmental Economics&Policies; Achieving Shared Growth; Poverty Reduction Strategies;

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References

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  1. Ravallion, Martin & Bidani, Benu, 1993. "How robust is a poverty profile?," Policy Research Working Paper Series 1223, The World Bank.
  2. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101.
  3. Arie Kapteyn & Peter Kooreman & Rob Willemse, 1988. "Some Methodological Issues in the Implementation of Subjective Poverty Definitions," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 222-242.
  4. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, vol. 46(8), pages 1453-1473, September.
  5. Bernard M.S. van Praag & P. Frijters & A. Ferrer-i-Carbonell, 2002. "The Anatomy of Subjective Well-being," Tinbergen Institute Discussion Papers 02-022/3, Tinbergen Institute.
  6. Greer, Joel & Thorbecke, Erik, 1986. "A methodology for measuring food poverty applied to Kenya," Journal of Development Economics, Elsevier, vol. 24(1), pages 59-74, November.
  7. Ravallion, Martin & Lokshin, Michael, 2002. "Rich and powerful? Subjective power and welfare in Russia," Policy Research Working Paper Series 2854, The World Bank.
  8. 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.
  9. Rose, Richard & McAllister, Ian, 1996. "Is Money the Measure of Welfare in Russia?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 75-90, March.
  10. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
  11. Hagenaars, Aldi J M & van Praag, Bernard M S, 1985. "A Synthesis of Poverty Line Definitions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 139-54, June.
  12. Oswald, A.J., 1997. "Happiness and Economic Performance," Papers 18, Centre for Economic Performance & Institute of Economics.
  13. Bernard M.S. van Praag & Paul Frijters, 1999. "The measurement of welfare and well-being; the Leyden approach," School of Economics and Finance Discussion Papers and Working Papers Series 071a, School of Economics and Finance, Queensland University of Technology.
  14. Ravallion, Martin & Lokshin, Michael, 2000. "Identifying welfare effects from subjective questions," Policy Research Working Paper Series 2301, The World Bank.
  15. Pollak, Robert A., 1991. "Welfare comparisons and situation comparisons," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 31-48, October.
  16. Robert J. MacCulloch & Rafael Di Tella & Andrew J. Oswald, 2001. "Preferences over Inflation and Unemployment: Evidence from Surveys of Happiness," American Economic Review, American Economic Association, vol. 91(1), pages 335-341, March.
  17. van Praag, Bernard M. S., 1991. "Ordinal and cardinal utility : An integration of the two dimensions of the welfare concept," Journal of Econometrics, Elsevier, vol. 50(1-2), pages 69-89, October.
  18. van Praag, Bernard & Goedhart, Theo & Kapteyn, Arie, 1980. "The Poverty Line-A Pilot Survey in Europe," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 461-65, August.
  19. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-21, May.
  20. de Vos, Klaas & Garner, Thesia I, 1991. "An Evaluation of Subjective Poverty Definitions: Comparing Results from the U.S. and the Netherlands," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 37(3), pages 267-85, September.
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Citations

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Cited by:
  1. Reetz, Sunny W.H. & Schwarze, Stefan & Bruemmer, Bernhard, 2012. "Poverty and Tropical Deforestation by Smallholders in Forest Margin Areas: Evidence from Central Sulawesi, Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126326, International Association of Agricultural Economists.
  2. Richard Mussa, 2010. "Impact of Fertility on Objective and Subjective Poverty in Malawi," SALDRU Working Papers 50, Southern Africa Labour and Development Research Unit, University of Cape Town.
  3. Marcel Fafchamps & David Stifel, 2009. "Taboos, agriculture and poverty," Economics Series Working Papers CSAE WPS/2009-15, University of Oxford, Department of Economics.
  4. Shaffer, Paul, 2013. "Ten Years of “Q-Squared”: Implications for Understanding and Explaining Poverty," World Development, Elsevier, vol. 45(C), pages 269-285.
  5. Javier Herrera & Mireille Razafindrakoto & Francois Roubaud, 2006. "Governance, Democracy and Poverty Reduction: Lessons drawn from household surveys in sub-Saharan Africa and Latin America," Ibero America Institute for Econ. Research (IAI) Discussion Papers 136, Ibero-America Institute for Economic Research.
  6. van Kempen, Luuk & Muradian, Roldan & Sandóval, César & Castañeda, Juan-Pablo, 2009. "Too poor to be green consumers? A field experiment on revealed preferences for firewood in rural Guatemala," Ecological Economics, Elsevier, vol. 68(7), pages 2160-2167, May.
  7. Migotto, Mauro & Davis, Benjamin & Carletto, Gero & Beegle, Kathleen, 2006. "Measuring Food Security Using Respondents' Perception of Food Consumption Adequacy," Working Paper Series RP2006/88, World Institute for Development Economic Research (UNU-WIDER).
  8. Paul Ningaye & Hilaire Nkengfack & Marie Antoinette Simonet & Laurentine Yemata, 2007. "Diversité ethno-culturelle et différentiel de pauvreté multidimensionnelle au Cameroun," Working Papers PMMA 2007-03, PEP-PMMA.
  9. 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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