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Measurements of poverty in Indonesia - 1996, 1999, and beyond


  • Pradhan, Menno
  • Suryahadi, Asep
  • Sumarto, Sudarno
  • Pritchett, Lant


Indonesia's economic crisis has caused a consumption expenditures deterioration in the welfare of Indonesians. Focusing on only one dimension of individual, and family welfare - consumption expenditures - the authors analyze two issues associated with the measurement of poverty. The first issue is how to produce regionally consistent poverty lines - that is, how to define a level of spending for each region that produces the same material standard of living. Without comparable data on prices, there is a problem of circularity. Choosing the reference population is important for defining the price level by which to deflate money expenditures to reach the same welfare level, but one needs to know the price level to define the reference population as a group with the same real expenditures. To address the problem of circularity, the authors use an iterative approach to defining poverty, one that produces consistent results across regions. They then use those poverty lines to examine the common"poverty profiles"(by location, sector, and so on). The second issueis more conceptual: how to expand the narrow measure of poverty, based on spending for consumption, with extensions that expand how welfare is measured, and allow more consistent comparisons of different individuals'welfare levels.

Suggested Citation

  • Pradhan, Menno & Suryahadi, Asep & Sumarto, Sudarno & Pritchett, Lant, 2000. "Measurements of poverty in Indonesia - 1996, 1999, and beyond," Policy Research Working Paper Series 2438, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2438

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    References listed on IDEAS

    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Emmanuel Skoufias & Asep Suryahadi, 2000. "Changes in Household Welfare, Poverty and Inequality During the Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 97-114.
    3. 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.
    4. Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
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    Cited by:

    1. Widodo, Tri, 2001. "An Alternative of Poverty Line Measurement: a Case Study of Indonesia," MPRA Paper 78323, University Library of Munich, Germany.
    2. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
    3. Purwantini Rahayu, Ina & Widodo, Tri, 2012. "The Causal Relationship between Corruption and Poverty in ASEAN: a General Method of Moments/Dynamic Panel Data Analysis," MPRA Paper 78328, University Library of Munich, Germany.
    4. repec:ilo:ilowps:375330 is not listed on IDEAS
    5. Ravallion, Martin & Lokshin, Michael, 2005. "Lasting local impacts of an economywide crisis," Policy Research Working Paper Series 3503, The World Bank.
    6. repec:dau:papers:123456789/5130 is not listed on IDEAS
    7. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, 2005. "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Development Economics Working Papers 22543, East Asian Bureau of Economic Research.
    8. Wetterberg, Anna, 2007. "Crisis, Connections, and Class: How Social Ties Affect Household Welfare," World Development, Elsevier, vol. 35(4), pages 585-606, April.


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