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Global poverty estimates: Present and future

  • Shatakshee Dhongde
  • Camelia Minoiu

We review the recent empirical literature on global poverty, focusing on key methodological aspects. These include the choice of welfare indicator, poverty line and purchasing power parity exchange rates, equivalence scales, data sources, and estimation methods. We also discuss the importance of the intra-household resource allocation process in determining within-household inequalities and potentially influencing poverty estimates. Based on a sensitivity analysis of global poverty estimates to different methodological approaches, we show that existing figures vary markedly with the choice of data source for mean income or consumption used to scale relative distributions; and with the statistical method used to estimate income distributions from tabulated data

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Paper provided by BWPI, The University of Manchester in its series Brooks World Poverty Institute Working Paper Series with number 13310.

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Date of creation: 2010
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Handle: RePEc:bwp:bwppap:13310
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  1. Wu, Ximing & Perloff, Jeffrey M., 2007. "GMM estimation of a maximum entropy distribution with interval data," Journal of Econometrics, Elsevier, vol. 138(2), pages 532-546, June.
  2. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc.
  3. Xavier Sala-i-Martin, 2002. "The disturbing "rise" of global income inequality," Discussion Papers 0102-44, Columbia University, Department of Economics.
  4. Villasenor, JoseA. & Arnold, Barry C., 1989. "Elliptical Lorenz curves," Journal of Econometrics, Elsevier, vol. 40(2), pages 327-338, February.
  5. Maxim Pinkovskiy & Xavier Sala-i-Martin, 2009. "Parametric Estimations of the World Distribution of Income," NBER Working Papers 15433, National Bureau of Economic Research, Inc.
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