Operational Poverty Targeting In Peru ? Proxy Means Testing With Non-Income Indicators
he measurement of per capita daily expenditures relative to a monetary poverty line, also known as ?sophisticated means testing?, is the most widely used approach to poverty assessment. However, it is reliant on the implementation of time- and cost-intensive household surveys. Hence, for operational purposes, it is not an effective method for targeting poor households with development services. This paper shows how to identify an alternative poverty assessment tool for Peru. The tool consists of a maximum of 15 indicators that are powerful predictors of per capita household expenditures. The indicators were selected out of a wide range of indicators used to gauge different poverty dimensions. The resultant poverty classification of households is based on the ?percent point function? of the predicted expenditures and validated by various accuracy measures and their confidence intervals. The results reveal that the 15 indicators correctly identify over 81 per cent of poor households when the national poverty line is employed as the benchmark. Thus, this tool might be considered, under certain conditions, as an alternative to the collection of detailed expenditure data. It offers an operational instrument for fairly accurate ex-ante poverty targeting and ex-post impact assessments.
|Date of creation:||Oct 2006|
|Publication status:||Published by UNDP - International Poverty Centre, October 2006, pages 1-20|
|Contact details of provider:|| Web page: http://www.ipc-undp.org|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fabio Veras Soares & Sergei Suarez Dillon Soares & Marcelo Medeiros & Rafael Guerreiro Osório, 2006. "Cash Transfer Programmes in Brazil: Impacts on Inequality and Poverty," Working Papers 21, International Policy Centre for Inclusive Growth.
- Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002.
"Targeting outcomes redux,"
FCND discussion papers
144, International Food Policy Research Institute (IFPRI).
- Coady, David P. & Grosh, Margaret & Hoddinott, John, 2002. "Targeting outcomes redux," FCND briefs 144, International Food Policy Research Institute (IFPRI).
- Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
- Glewwe, Paul & van der Gaag, Jacques, 1990. "Identifying the poor in developing countries: Do different definitions matter?," World Development, Elsevier, vol. 18(6), pages 803-814, June.
- Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
- Zeller, Manfred & Sharma, Manohar & Henry, Carla & Lapenu, Cecile, 2006. "An operational method for assessing the poverty outreach performance of development policies and projects: Results of case studies in Africa, Asia, and Latin America," World Development, Elsevier, vol. 34(3), pages 446-464, March.
- Hentschel, Jesko & Lanjouw, Jean Olson & Lanjouw, Peter & Poggi, Javier, 1998. "Combining census and survey data to study spatial dimensions of poverty," Policy Research Working Paper Series 1928, The World Bank.
- Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-1182, December.
- Marcelo Medeiros, 2006. "Poverty, inequality and redistribution: A methodology to define the rich," Working Papers 18, International Policy Centre for Inclusive Growth.
- Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
- Glewwe, P., 1990. "Investigating The Determinants Of Household Welfare In Cote D'Ivoire," Papers 71, World Bank - Living Standards Measurement.
- Filmer, Deon*Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
- Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," World Bank Economic Review, World Bank Group, vol. 14(1), pages 147-165, January.
- Deon Filmer & Lant Pritchett, 1999. "The Effect of Household Wealth on Educational Attainment: Evidence from 35 Countries," Population and Development Review, The Population Council, Inc., vol. 25(1), pages 85-120.
- 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.
- Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," World Bank Economic Review, World Bank Group, vol. 8(2), pages 191-211, May.
- Ahmed, Akhter U. & Bouis, Howarth E., 2002. "Weighing what's practical: proxy means tests for targeting food subsidies in Egypt," Food Policy, Elsevier, vol. 27(5-6), pages 519-540.
- Skoufias, Emmanuel & Davis, Benjamin & de la Vega, Sergio, 2001. "Targeting the Poor in Mexico: An Evaluation of the Selection of Households into PROGRESA," World Development, Elsevier, vol. 29(10), pages 1769-1784, October. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ipc:wpaper:30. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andre Lyra)
If references are entirely missing, you can add them using this form.