IDEAS home Printed from https://ideas.repec.org/a/wly/povpop/v14y2022i3p242-267.html
   My bibliography  Save this article

A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey

Author

Listed:
  • John Paolo Rosales Rivera

Abstract

Determining the poverty threshold using a meaningful measure is complex. In this study, we deviated from usual techniques. Instead, we employed a nonparametric approach in conducting a comparative analysis. Using the Philippine Family Income and Expenditure Survey, we estimated national and regional Epanechnikov kernel densities to understand how poverty evolved from 2000 to 2015. Results indicated that improvements in Philippine poverty incidence are attributable to various government poverty alleviation programs and to improvements in the country's economic performance. The consolidated picture of poverty generated prompted a pluralistic approach to poverty alleviation such as attention on agricultural reform and rural development; national industrialization policy; supportive trade, financial, and investment policies; and robust social protection policies. All of which require stakeholder coordination. Determinar el umbral de pobreza usando una medida significativa es complejo. En este estudio, nos desviamos de las técnicas habituales. En su lugar, empleamos un enfoque no paramétrico al realizar un análisis comparativo. Utilizando la Encuesta de ingresos y gastos familiares de Filipinas, estimamos las densidades del núcleo de Epanechnikov nacionales y regionales para comprender cómo evolucionó la pobreza entre 2000 y 2015. Los resultados indicaron que las mejoras en la incidencia de la pobreza en Filipinas son atribuibles a varios programas gubernamentales de alivio de la pobreza y a mejoras en la economía del país. actuación. La imagen consolidada de la pobreza generada impulsó un enfoque pluralista del alivio de la pobreza, como la atención a la reforma agrícola y el desarrollo rural; política nacional de industrialización; políticas comerciales, financieras y de inversión de apoyo; y políticas sólidas de protección social. Todo lo cual requiere la coordinación de las partes interesadas. 使用有意义的标准确定贫困线是一项复杂的工作。本研究中,我们不使用常规的研究方法。相反,我们采用非参数方法进行比较分析。通过使用菲律宾家庭收入和支出调查,我们估计了国家和地区的Epanechnikov核密度,以期理解2000年至2015年间贫困是如何演变的。结果表明,菲律宾贫困发生率的增加归因于不同的政府减贫计划和国家经济表现的改善。所产生的综合贫困情况促使采取多元化的减贫方法,例如关注农业改革和农村发展、国家工业化政策、支持性贸易政策、金融政策和投资政策、以及稳健的社会保护政策。这一切都需要利益攸关方的协调。

Suggested Citation

  • John Paolo Rosales Rivera, 2022. "A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 242-267, September.
  • Handle: RePEc:wly:povpop:v:14:y:2022:i:3:p:242-267
    DOI: 10.1002/pop4.346
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/pop4.346
    Download Restriction: no

    File URL: https://libkey.io/10.1002/pop4.346?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jose Ramon G. Albert & Lilia V. Elloso, 2007. "Toward Measuring Household Vulnerability to Income Poverty in the Philippines," Macroeconomics Working Papers 22322, East Asian Bureau of Economic Research.
    2. Jose Ramon G. Albert & Jana Flor V. Vizmanos, 2018. "Vulnerability to Poverty in the Philippines: An Examination of Trends from 2003 to 2015," Working Papers id:12898, eSocialSciences.
    3. Stephen Jenkins & Philippe Kerm, 2005. "Accounting for income distribution trends: A density function decomposition approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(1), pages 43-61, April.
    4. Arsenio M. Balisacan, 2011. "What Has Really Happened to Poverty in the Philippines? New Measures, Evidence, and Policy Implications," UP School of Economics Discussion Papers 201114, University of the Philippines School of Economics.
    5. Francesco Burchi & Pasquale De Muro, 2016. "Measuring Human Development in a High-Income Country: A Conceptual Framework for Well-Being Indicators," Forum for Social Economics, Taylor & Francis Journals, vol. 45(2-3), pages 120-138, August.
    6. Garfinkel, Irwin & Haveman, Robert H, 1974. "Earnings Capacity and the Target Efficiency of Alternative Transfer Programs," American Economic Review, American Economic Association, vol. 64(2), pages 196-204, May.
    7. John Quiggin & Renuka Mahadevan, 2015. "The poverty burden: a measure of the difficulty of ending extreme poverty," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(2), pages 167-177, April.
    8. Ms. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 2008/183, International Monetary Fund.
    9. Arsenio M. Balisacan, 2001. "Poverty in the Philippines : An Update and Reexamination," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 38(1), pages 15-52, June.
    10. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    11. Ricardo Fuentes, 2005. "Poverty, Pro-Poor Growth and Simulated Inequality Reduction," Human Development Occasional Papers (1992-2007) HDOCPA-2005-11, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    12. Albert, Jose Ramon G. & Abrigo, Michael Ralph M. & Quimba, Francis Mark A. & Vizmanos, Jana Flor V., 2020. "Poverty, the Middle Class, and Income Distribution amid COVID-19," Discussion Papers DP 2020-22, Philippine Institute for Development Studies.
    13. Jose Ramon G. Albert & Andre Philippe Ramos, 2010. "Trends in Household Vulnerability," Development Economics Working Papers 22805, East Asian Bureau of Economic Research.
    14. Anthony F. Shorrocks & Guanghua Wan, 2008. "Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty Analysis," WIDER Working Paper Series RP2008-16, World Institute for Development Economic Research (UNU-WIDER).
    15. Ugo Gentilini & Andy Sumner, 2012. "Poverty Where People Live: What do National Poverty Lines Tell us about Global Poverty?," Working Papers 98, International Policy Centre for Inclusive Growth.
    16. Lars Osberg & Kuan Xu, 2008. "How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 419-441, May.
    17. J. L. Nicholson, 1976. "Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 22(1), pages 1-11, March.
    18. Udaya Mishra & Rudra Narayan Mishra, 2009. "On comparison of nutritional deprivation: an illustration using Foster Greer Thorbecke criterion," Applied Economics Letters, Taylor & Francis Journals, vol. 16(10), pages 1021-1024.
    19. Balisacan, Arsenio M., 1992. "Equivalence Scale and Poverty Assessment in a Poor Country," Philippine Journal of Development JPD 1992 Vol. XIX No. 1-c, Philippine Institute for Development Studies.
    20. Andy Sumner & Peter Edward, 2014. "Assessing Poverty Trends in Indonesia by International Poverty Lines," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 207-225, August.
    21. Su Chen, 2015. "Optimal Bandwidth Selection for Kernel Density Functionals Estimation," Journal of Probability and Statistics, Hindawi, vol. 2015, pages 1-21, August.
    22. Migbaru Alamirew Workneh, 2020. "Nonmonetary poverty in Ethiopia: Multidimensional approach," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 326-356, December.
    23. Christophe Muller, 2006. "Defining Poverty Lines As a Fraction of Central Tendency," Southern Economic Journal, John Wiley & Sons, vol. 72(3), pages 720-729, January.
    24. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-169, July.
    25. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    26. Seneca, Joseph J & Taussig, Michael K, 1971. "Family Equivalence Scales and Personal Income Tax Exemptions for Children," The Review of Economics and Statistics, MIT Press, vol. 53(3), pages 253-262, August.
    27. Nicole Rippin, 2016. "Multidimensional Poverty in Germany: A Capability Approach," Forum for Social Economics, Taylor & Francis Journals, vol. 45(2-3), pages 230-255, August.
    28. Mark Montgomery & Michele Gragnolati & Kathleen Burke & Edmundo Paredes, 2000. "Measuring living standards with proxy variables," Demography, Springer;Population Association of America (PAA), vol. 37(2), pages 155-174, May.
    29. Tabuga, Aubrey D. & Mina, Christian D. & Reyes, Celia M. & Asis, Ronina D. & Datu, Maria Blesila G., 2010. "Are We Winning the Fight against Poverty? An Assessment of the Poverty Situation in the Philippines," Discussion Papers DP 2010-26, Philippine Institute for Development Studies.
    30. Christos Papatheodorou & Paraskevi Peristera & Anastasia Kostaki, 2004. "Kernel Density Techniques as a Tool for Estimating and Comparing Income Distributions: A Cross European–Country Study," Journal of Income Distribution, Ad libros publications inc., vol. 13(1-2), pages 2-2, March-Jun.
    31. Robert Ackland & Steve Dowrick & Benoit Freyens, 2013. "Measuring Global Poverty: Why PPP Methods Matter," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 813-824, July.
    32. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-1230, September.
    33. Arsenio M. Balisacan, 1999. "Reconstructing Poverty Profiles in the Philippines," UP School of Economics Discussion Papers 199915, University of the Philippines School of Economics.
    34. Theo Goedhart & Victor Halberstadt & Arie Kapteyn & Bernard van Praag, 1977. "The Poverty Line: Concept and Measurement," Journal of Human Resources, University of Wisconsin Press, vol. 12(4), pages 503-520.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.
    2. Martin Ravallion & Shaohua Chen, 2011. "Weakly Relative Poverty," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1251-1261, November.
    3. Sreenivasan Subramanian, 2004. "Indicators of Inequality and Poverty," WIDER Working Paper Series RP2004-25, World Institute for Development Economic Research (UNU-WIDER).
    4. Marchand, J. & Smeeding, T., 2016. "Poverty and Aging," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 905-950, Elsevier.
      • Marchand, Joseph & Smeeding, Timothy, 2016. "Poverty and Aging," Working Papers 2016-11, University of Alberta, Department of Economics, revised 20 Nov 2016.
    5. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    6. Camelia Minoiu & Sanjay Reddy, 2014. "Kernel density estimation on grouped data: the case of poverty assessment," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 163-189, June.
    7. Paloma Taltavull de la Paz & Francisco Juárez & Paloma Monllor, 2016. "Fuel Poverty: Evidence from housing perspective," Working Papers 2016/20, Institut d'Economia de Barcelona (IEB).
    8. Andrea Brandolini, 2013. "Poverty," Chapters, in: Luigino Bruni & Stefano Zamagni (ed.), Handbook on the Economics of Reciprocity and Social Enterprise, chapter 26, pages 261-270, Edward Elgar Publishing.
    9. Decerf, Benoit, 2017. "Why not consider that being absolutely poor is worse than being only relatively poor?," Journal of Public Economics, Elsevier, vol. 152(C), pages 79-92.
    10. Decerf, B., 2015. "A new index combining the absolute and relative aspects of income poverty: Theory and application," LIDAM Discussion Papers CORE 2015050, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. Dhongde, Shatakshee & Minoiu, Camelia, 2013. "Global Poverty Estimates: A Sensitivity Analysis," World Development, Elsevier, vol. 44(C), pages 1-13.
    12. Facundo Alvaredo & Leonardo Gasparini, 2013. "Recent Trends in Inequality and Poverty in Developing Countries," CEDLAS, Working Papers 0151, CEDLAS, Universidad Nacional de La Plata.
    13. David (David Patrick) Madden, 2002. "A review of recent research into poverty in Ireland," Working Papers 200232, School of Economics, University College Dublin.
    14. DECERF, Benoit, 2014. "Income poverty measures with relative poverty lines," LIDAM Discussion Papers CORE 2014022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. Duangkamon Chotikapanich & William Griffiths & Wasana Karunarathne & D.S. Prasada Rao, 2013. "Calculating Poverty Measures from the Generalised Beta Income Distribution," The Economic Record, The Economic Society of Australia, vol. 89, pages 48-66, June.
    16. Dipesh Gangopadhyay & Robert B. Nielsen & Velma Zahirovic-Herbert, 2021. "Methodology and Axiomatic Characterization of a Multidimensional and Fuzzy Measure of Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 1-37, January.
    17. Corazzini, Luca & Esposito, Lucio & Majorano, Francesca, 2011. "Exploring the absolutist vs relativist perception of poverty using a cross-country questionnaire survey," Journal of Economic Psychology, Elsevier, vol. 32(2), pages 273-283, March.
    18. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    19. Donald Hirsch & Matt Padley & Juliet Stone & Laura Valadez-Martinez, 2020. "The Low Income Gap: A New Indicator Based on a Minimum Income Standard," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 67-85, May.
    20. Callan, Tim & Nolan, Brian & Whelan, Brendan J. & Hannan, Damian F. & Creighton, S., 1989. "Poverty, Income and Welfare in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS146, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:povpop:v:14:y:2022:i:3:p:242-267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1944-2858 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.