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Dynamic multi-level analysis of households' living standards and poverty: evidence from Vietnam

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  • Aassve, Arnstein
  • Arpino, Bruno

Abstract

The paper investigates the role of multi-level structures in poverty analysis based on household level data. We demonstrate how multi-level models can be applied to standard poverty analysis and highlight its usefulness in terms of assessing the extent community characteristics matter in determining poverty status and dynamics. We provide two applications. The first is an example of a growth model that control for characteristics measured at the initial time period, and considers directly to what extent the same characteristics contribute to explain changes in economic wellbeing over time. In the second application we model the determinants of escaping poverty. Both applications use longitudinal data from Vietnam recorded at two points in time during the nineties, a period where Vietnam experienced strong economic growth. We demonstrate that failing to control for multi-level data structures could give incorrect inference about the effect of covariates of interest. We also demonstrate how the multi-level models can be used for regional and community level policy analysis that otherwise is difficult to implement in more standard regression analysis.

Suggested Citation

  • Aassve, Arnstein & Arpino, Bruno, 2007. "Dynamic multi-level analysis of households' living standards and poverty: evidence from Vietnam," ISER Working Paper Series 2007-10, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2007-10
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    File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2007-10.pdf
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    1. Darius Lakdawalla & Tomas Philipson, 2002. "The Growth of Obesity and Technological Change: A Theoretical and Empirical Examination," Working Papers 0203, Harris School of Public Policy Studies, University of Chicago.
    2. Andrew Chesher, 1997. "Diet Revealed?: Semiparametric Estimation of Nutrient Intake-Age Relationships," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 160(3), pages 389-428.
    3. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    4. Howard Smith, 2004. "Supermarket Choice and Supermarket Competition in Market Equilibrium," Review of Economic Studies, Oxford University Press, vol. 71(1), pages 235-263.
    5. Andrew Chesher, 1998. "Individual demands from household aggregates: time and age variation in the composition of diet," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 505-524.
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    Cited by:

    1. Ejaz Gul & Imran Sharif Chaudhry, 2015. "Spatial Distribution of Socio-economic Inequality: Evidence from Inequality Maps of a Village in Tribal Region of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 793-808.
    2. Bruno ARPINO & Roberta VARRIALE, 2010. "Assessing The Quality Of Institutions’ Rankings Obtained Through Multilevel Linear Regression Models," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(1(11)_Spr), pages 7-22.
    3. Arpino, Bruno & Varriale, Roberta, 2009. "Assessing the quality of institutions’ rankings obtained through multilevel linear regression models," MPRA Paper 19873, University Library of Munich, Germany.
    4. Johannes Gräb & Michael Grimm, 2008. "Spatial Inequalities Explained: Evidence from Burkina Faso," Discussion Papers of DIW Berlin 843, DIW Berlin, German Institute for Economic Research.

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