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Targeting the Poor in Vietnam using a Small Area Estimation Method

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  • Nguyen Viet, Cuong

Abstract

To estimate the poverty rate at the commune level, the Ministry of Labor, Invalids and Social Affairs firstly collects information on households’ income per capita, and compares their income with a defined poverty line. A household is identified as a poor one if their income per capita is below the poverty line. Then, the poverty rate of a commune is simply the ratio of the defined poor households in that commune. This method can raise questions about the quality of the collected data on income. This paper examines the quality of expenditure data collected in this simple way. It is found that the expenditure data collected in the simple way are considerably lower than expenditure data collected using detailed questionnaires. Thus collection of expenditure or income data using simple questionnaires tends to underestimate the actual expenditure or income. For poverty targeting in small areas such as communes or districts, this paper suggests the application of this small areas estimation method.

Suggested Citation

  • Nguyen Viet, Cuong, 2005. "Targeting the Poor in Vietnam using a Small Area Estimation Method," MPRA Paper 25761, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25761
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    File URL: https://mpra.ub.uni-muenchen.de/25761/1/MPRA_paper_25761.pdf
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    References listed on IDEAS

    as
    1. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    2. Minot, Nicholas & Baulch, Bob & Epperecht, Michael, 2006. "Poverty and inequality in Vietnam: spatial patterns and geographic determinants," Research reports 148, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. McGrath, Tim & Nguyen, Cuong & Pamela, White, 2006. "Assessment of the National Targeted Programmes for Poverty Reduction in Vietnam," MPRA Paper 54152, University Library of Munich, Germany.
    2. Nguyen, Cuong & Lo, Duc, 2016. "Testing Proxy Means Tests in the Field: Evidence from Vietnam," MPRA Paper 80002, University Library of Munich, Germany.
    3. McGrath, Tim & Nguyen, Cuong & Pamela, White, 2006. "Participatory and Pro-Poor Local Contribution Mechanisms in Poverty Reduction Program: Evidence from Vietnam," MPRA Paper 54151, University Library of Munich, Germany.
    4. Cuong Viet Nguyen & Anh Tran, 2014. "Poverty identification: practice and policy implications in Vietnam," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 28(1), pages 116-136, May.

    More about this item

    Keywords

    Poverty; the poor; poverty targeting; poverty mapping; small area estimation;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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