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Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections

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  • Hai‐Anh H. Dang
  • Peter F. Lanjouw

Abstract

Panel data are rarely available for developing countries. Departing from traditional pseudo‐panel methods that require multiple rounds of cross‐sectional data to study poverty mobility at the cohort level, we develop a procedure that works with as few as two survey rounds and produces point estimates of transitions along the welfare distribution at the more disaggregated household level. Validation using Monte Carlo simulations and real cross‐sectional and actual panel survey data – from several countries, spanning different income levels and geographical regions – perform well under various deviations from model assumptions. The method could also inform investigation of other welfare outcome dynamics.

Suggested Citation

  • Hai‐Anh H. Dang & Peter F. Lanjouw, 2023. "Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(3), pages 599-622, June.
    • Handle: RePEc:bla:obuest:v:85:y:2023:i:3:p:599-622
    DOI: 10.1111/obes.12539
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    1. Dang, Hai-Anh H. & Raju, Dhushyanth & Tanaka, Tomomi & Abanokova, Kseniya, 2024. "Poverty dynamics for Ghana during 2005/06–2016/17: an investigation using synthetic panels," LSE Research Online Documents on Economics 124105, London School of Economics and Political Science, LSE Library.

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    More about this item

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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