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Monitoring Poverty Without Consumption Data : An Application Using the Albania Panel Survey

  • CARLO AZZARRI
  • GERO CARLETTO
  • BENJAMIN DAVIS
  • ALBERTO ZEZZA

In developing countries, poverty is generally measured with expenditure data, which are normally available only every three to five years. In between surveys, there is a clear need to provide policy makers with information for the monitoring of poverty trends. This paper reviews several methods with which to perform this monitoring and compares the poverty estimates and trends resulting from their application to a panel data set for Albania. The results are broadly consistent across methods and point to an overall improvement in welfare conditions over time, concentrated in urban areas. Lacking a gold standard measure, the use of a suite of welfare indicators, if duly validated, can be a viable approach to monitor poverty trends. Caution should be exercised in drawing conclusions about the actual magnitudes of the changes.

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Article provided by M.E. Sharpe, Inc. in its journal Eastern European Economics.

Volume (Year): 44 (2006)
Issue (Month): 1 (February)
Pages: 59-82

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Handle: RePEc:mes:eaeuec:v:44:y:2006:i:1:p:59-82
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  1. Ravallion, Martin & Lokshin, Michael, 2000. "Identifying welfare effects from subjective questions," Policy Research Working Paper Series 2301, The World Bank.
  2. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, vol. 46(8), pages 1453-1473, September.
  3. Ravallion, Martin, 1996. "How Well Can Method Substitute for Data? Five Experiments in Poverty Analysis," World Bank Research Observer, World Bank Group, vol. 11(2), pages 199-221, August.
  4. Bidani, Benu & Ravallion, Martin, 1995. "Decomposing social indicators using distributional data," Policy Research Working Paper Series 1487, The World Bank.
  5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  6. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
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