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Durable goods, access to services and the derivation of an asset index: Comparing two methodologies and three countries

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  • Bérenger, Valérie
  • Deutsch, Joseph
  • Silber, Jacques

Abstract

This paper compares two approaches to the derivation of asset indices in order to derive measures of multidimensional poverty. The first one assumes that there exists an order of acquisition of durable goods and access to services. The second one applies correspondence analysis to the same data and uses the first factor to evaluate the extent of poverty. While these two methodologies provide a ranking of the households according to their long-run economic status, they correspond to two different ways of using and summarizing the information provided by the observed indicators of the households' living conditions. The empirical investigation covers three countries, Egypt, Morocco and Turkey, and is based on the Demographic and Health Surveys. The application of these two methodologies, separately for the whole sample and for urban and rural areas, gives interesting results that show important differences within and between countries. These results seem to indicate that the order of acquisition approach and correspondence analysis provide complementary and useful information on the extent of the deprivation experienced by households in these three countries.

Suggested Citation

  • Bérenger, Valérie & Deutsch, Joseph & Silber, Jacques, 2013. "Durable goods, access to services and the derivation of an asset index: Comparing two methodologies and three countries," Economic Modelling, Elsevier, vol. 35(C), pages 881-891.
  • Handle: RePEc:eee:ecmode:v:35:y:2013:i:c:p:881-891
    DOI: 10.1016/j.econmod.2013.02.042
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    References listed on IDEAS

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    Cited by:

    1. Chen, Guojin & Hong, Zhiwu & Ren, Yu, 2016. "Durable consumption and asset returns: Cointegration analysis," Economic Modelling, Elsevier, vol. 53(C), pages 231-244.
    2. Fusco, Alessio, 2015. "The relationship between income and housing deprivation: A longitudinal analysis," Economic Modelling, Elsevier, vol. 49(C), pages 137-143.
    3. Valérie BÉRENGER, 2013. "La Croissance A-T-Elle Ete « Pro-Pauvres » En Termes De Niveau De Vie Et D’Education En Egypte Entre 2000 Et 2008 ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 37, pages 119-148.
    4. Fernandes, Cristina & Crespo, Nuno & Simoes, Nadia, 2013. "Poverty, Richness, and Inequality: Evidence for Portugal Using a Housing Comfort Index," MPRA Paper 52456, University Library of Munich, Germany.

    More about this item

    Keywords

    Asset index; Correspondence analysis; Egypt; Morocco; Multidimensional poverty; Order of acquisition of durable goods; Turkey;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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