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Uganda - A new set of utility consistent poverty line

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  • Bjorn Van Campenhout
  • Haruna Sekabira
  • Fiona Nattembo

Abstract

Uganda has seen impressive economic growth and substantial poverty reductions over the past few decades. Today, official headcount poverty stands at about 20 per cent. However, recent research relying on non-monetary wealth indicators challenges official poverty statistics and suggests that headcount poverty is about 60 per cent higher. We argue that an outdated poverty line that does not take into consideration the spatial variation of diets in Uganda could explain the divergence. In this paper, we document how we estimate a new set of utility consistent poverty lines for Uganda using the Uganda National Household Survey of 2012-13 and use these updated poverty lines to calculate poverty. We find poverty levels to be higher and much more in line with what other studies suggest.

Suggested Citation

  • Bjorn Van Campenhout & Haruna Sekabira & Fiona Nattembo, 2015. "Uganda - A new set of utility consistent poverty line," WIDER Working Paper Series 129, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2015-129
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    References listed on IDEAS

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    1. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," World Bank Economic Review, World Bank Group, vol. 8(1), pages 75-102, January.
    2. Tarp, Finn, et al, 2002. "The Robustness of Poverty Profiles Reconsidered," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 77-108, October.
    3. Mukherjee, Sanjukta & Benson, Todd, 2003. "The Determinants of Poverty in Malawi, 1998," World Development, Elsevier, vol. 31(2), pages 339-358, February.
    4. Simon Appleton, 2003. "Regional or National Poverty Lines? The Case of Uganda in the 1990s," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 12(4), pages 598-624, December.
    5. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
    6. Martin Ravallion & Michael Lokshin, 2006. "Testing Poverty Lines," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 399-421, September.
    7. David Lawson & Andy Mckay & John Okidi, 2006. "Poverty persistence and transitions in Uganda: A combined qualitative and quantitative analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1225-1251.
    8. Todd Benson & Samuel Mugarura & Kelly Wanda, 2008. "Impacts in Uganda of rising global food prices: the role of diversified staples and limited price transmission," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 513-524, November.
    9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    10. Simon Appleton & Tom Emwanu & Johnson Kagugube & James Muwonge, 1999. "Changes in poverty in Uganda, 1992-1997," CSAE Working Paper Series 1999-22, Centre for the Study of African Economies, University of Oxford.
    11. Sarah, Ssewanyana & Ibrahim, Kasirye, 2014. "Uganda’s progress towards poverty reduction during the last decade 2002/3-2012/13: Is the gap between leading and lagging areas widening or narrowing?," Research Series 206134, Economic Policy Research Centre (EPRC).
    12. Dijkstra, A. Geske & Kees van Donge, Jan, 2001. "What Does the 'Show Case' Show? Evidence of and Lessons from Adjustment in Uganda," World Development, Elsevier, vol. 29(5), pages 841-863, May.
    13. Sebastian Levine, 2012. "Exploring Differences in National and International Poverty Estimates: Is Uganda on Track to Halve Poverty by 2015?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 107(2), pages 331-349, June.
    14. Anirudh Krishna & Daniel Lumonya & Milissa Markiewicz & Firminus Mugumya & Agatha Kafuko & Jonah Wegoye, 2006. "Escaping poverty and becoming poor in 36 villages of Central and Western Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 346-370.
    15. Emwanu, Thomas & Hoogeveen, Johannes G. & Okiira Okwi, Paul, 2006. "Updating Poverty Maps with Panel Data," World Development, Elsevier, vol. 34(12), pages 2076-2088, December.
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    Keywords

    poverty lines; diet; basic needs; spatial patterns; Uganda;

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