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Poverty Lines as Context Deflators: A Method to Account for Regional Diversity with Application to the Democratic Republic of Congo

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  • Wim Marivoet
  • Tom De Herdt

Abstract

type="main"> This paper proposes a particular methodology to render budget data more comparable over highly diverse regions. More specifically, a set of regional poverty lines will be derived and employed as deflators to correct household expenditures for spatial differences in prices and needs. The quality of these deflators depends on the extent to which the underlying poverty lines adhere to the principles of consistency and specificity. Central to reconciling both principles in practice is our pursuit for austerity in setting poverty thresholds as well as the view that differences in social norms mainly reflect differences in social inclusion needs. The particularity of the proposed method compared to standard practice lies in the combination of: (i) the pronounced subdivision in socio-economic strata; (ii) the use of a differential calorie threshold per sector; (iii) the introduction of protein intake; (iv) the derivation of a minimal house rent; and (v) the use of an austere non-food/non-housing allowance. The impact of this method is illustrated using a budget survey of the Democratic Republic of Congo.

Suggested Citation

  • Wim Marivoet & Tom De Herdt, 2015. "Poverty Lines as Context Deflators: A Method to Account for Regional Diversity with Application to the Democratic Republic of Congo," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(2), pages 329-352, June.
    • Handle: RePEc:bla:revinw:v:61:y:2015:i:2:p:329-352
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    1. Wim Marivoet & Elodie Becquey & Bjorn Campenhout, 2019. "How well does the Food Consumption Score capture diet quantity, quality and adequacy across regions in the Democratic Republic of the Congo (DRC)?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(5), pages 1029-1049, October.
    2. Marivoet, Wim, 2016. "Food markets and nutrition in the Democratic Republic of the Congo (2004–2005):," IFPRI discussion papers 1566, International Food Policy Research Institute (IFPRI).
    3. Nakamura,Shohei & Yoshida,Nobuo, 2021. "Linking Intra- and Inter-Country Spatial Price Adjustments in Global Poverty Measurement :Urban PPP Bias and Reference Price Mismatch," Policy Research Working Paper Series 9684, The World Bank.
    4. Cristina Bernini & Silvia Emili & Maria Rosaria Ferrante, 2023. "Poverty‐happiness nexus: Does the use of regional poverty lines matter?," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 253-272, April.
    5. Moatsos Michail, 2016. "Global Absolute Poverty: Behind the Veil of Dollars," Journal of Globalization and Development, De Gruyter, vol. 7(2), pages 1-28, December.
    6. Chen,Xiaomeng & Mungai,Rose & Nakamura,Shohei & Pearson,Thomas Patrick & Wambile,Ayago Esmubancha & Yoshida,Nobuo, 2020. "How Useful is CPI Price Data for Spatial Price Adjustment in Poverty Measurement? : A Case from Ghana," Policy Research Working Paper Series 9388, The World Bank.
    7. van den Boom,Bart & Halsema,Alex & Molini,Vasco, 2015. "Are we confusing poverty with preferences ?," Policy Research Working Paper Series 7247, The World Bank.

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