Poverty and Permanent Income : A Methodology for Cross-Section Data
If the set of households which are income poor does not fully overlap with the set of the consumption poor, it could well be that income and consumption expenditure convey different information regarding an unobserved variable on the basis of which families allocate their resources intertemporally. This paper presents a methodology for predicting the unobserved permanent incomes of households using multiple welfare indicators typically available in cross-section data. The methods are illustrated using data from the Swiss Consumption Survey of 1990.
|Date of creation:||Nov 2000|
|Date of revision:|
|Publication status:||Forthcoming in Multidimensional Approaches to Poverty Measurement : Theory and Applications, Deutsch, J. and Silber, J. (eds), Edward Elgar, London|
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