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Robustness of subjective welfare analysis in a poor developing country - Madagascar 2001

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  • Lokshin, Michael
  • Umapathi, Nithin
  • Paternostro, Stefano

Abstract

The authors analyze the subjective perceptions of poverty in Madagascar in 2001 and their relationship to objective poverty indicators. They base their analysis on survey responses to a series of subjective perception questions. The authors extend the existing empirical methodology for estimating subjective poverty lines on the basis of categorical consumption adequacy questions. Based on this methodology they calculate the household-specific, subjective poverty lines and compare the poverty profiles derived from different subjective welfarequestions. The results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on objective poverty lines. The subjective welfare analysis can be used in poor developing countries for evaluating socioeconomic and distributional impacts of various policy interventions.

Suggested Citation

  • Lokshin, Michael & Umapathi, Nithin & Paternostro, Stefano, 2004. "Robustness of subjective welfare analysis in a poor developing country - Madagascar 2001," Policy Research Working Paper Series 3191, The World Bank.
    • Handle: RePEc:wbk:wbrwps:3191
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    Cited by:

    1. Javier Herrera & Mireille Razafindrakoto & François Roubaud, 2007. "Governance, Democracy and Poverty Reduction: Lessons Drawn from Household Surveys in Sub‐Saharan Africa and Latin America," International Statistical Review, International Statistical Institute, vol. 75(1), pages 70-95, April.
    2. Zsoka Koczan, 2022. "Perceptions of economic well‐being in the Western Balkans," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 30(4), pages 845-867, October.
    3. Paul Ningaye & Hilaire Nkengfack & Marie Antoinette Simonet & Laurentine Yemata, 2007. "Diversité ethno-culturelle et différentiel de pauvreté multidimensionnelle au Cameroun," Working Papers PMMA 2007-03, PEP-PMMA.
    4. Suxia Li & Meng Cai, 2024. "Social support and reference group: the dual action mechanism of the social network on subjective poverty," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.
    5. Reetz, Sunny W.H. & Schwarze, Stefan & Brümmer, Bernhard, "undated". "Poverty and Tropical Deforestation by Smallholders in Forest Margin Areas: Evidence from Central Sulawesi, Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126326, International Association of Agricultural Economists.
    6. Olivia S. Jin & Phanindra V. Wunnava, 2023. "“Feeling richer and happier? The effect of self-perceived economic welfare on life satisfaction: longitudinal evidence from a transition economy”," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    7. Jin, Olivia S. & Wunnava, Phanindra V., 2020. "Feeling Richer and Happier? Self-Perceived Economic Welfare and Life Satisfaction: Evidence of 'Easterlin Paradox' from Russian Longitudinal Data," GLO Discussion Paper Series 625, Global Labor Organization (GLO).
    8. Ravallion, Martin, 2012. "Poor, or just feeling poor ? on using subjective data in measuring poverty," Policy Research Working Paper Series 5968, The World Bank.
    9. Nazim, Habibov & Elvin, Afandi, 2009. "Analysis of subjective wellbeing in low-income transitional countries: evidence from comparative national surveys in Armenia,Azerbaijan and Georgia," MPRA Paper 42720, University Library of Munich, Germany.
    10. Dorrit Posel & Michael Rogan, 2014. "Measured as Poor Versus Feeling Poor: Comparing Objective and Subjective Poverty Rates in South Africa," WIDER Working Paper Series wp-2014-133, World Institute for Development Economic Research (UNU-WIDER).
    11. David Stifel & Marcel Fafchamps & Bart Minten, 2011. "Taboos, Agriculture and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 47(10), pages 1455-1481.
    12. van Kempen, Luuk & Muradian, Roldan & Sandóval, César & Castañeda, Juan-Pablo, 2009. "Too poor to be green consumers? A field experiment on revealed preferences for firewood in rural Guatemala," Ecological Economics, Elsevier, vol. 68(7), pages 2160-2167, May.
    13. repec:dau:papers:123456789/4394 is not listed on IDEAS
    14. Steven F. Koch, 2023. "Basic Needs (in)Security and Subjective Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(3), pages 723-757, October.
    15. Mussa, Richard, 2009. "Impact of fertility on objective and subjective poverty in Malawi," MPRA Paper 16089, University Library of Munich, Germany.
    16. Gero Carletto & Alberto Zezza, 2006. "Being poor, feeling poorer: Combining objective and subjective measures of welfare in Albania," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 739-760.
    17. Posel, Dorrit & Rogan, Michael, 2014. "Measured as poor versus feeling poor: Comparing objective and subjective poverty rates in South Africa," WIDER Working Paper Series 133, World Institute for Development Economic Research (UNU-WIDER).
    18. Migotto, Mauro & Davis, Benjamin & Carletto, Calogero & Beegle, Kathleen, "undated". "Measuring food security using respondents' perception of food consumption adequacy," ESA Working Papers 289068, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    19. Shaffer, Paul, 2013. "Ten Years of “Q-Squared”: Implications for Understanding and Explaining Poverty," World Development, Elsevier, vol. 45(C), pages 269-285.
    20. Zsoka Koczan, 2016. "Being Poor, Feeling Poorer: Inequality, Poverty and Poverty Perceptions in the Western Balkans," IMF Working Papers 2016/031, International Monetary Fund.
    21. Carolina Castilla, 2012. "Subjective well-being and reference-dependence: Insights from Mexico," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 219-238, June.
    22. Verónica Amarante & Maira Colacce & Federico Scalese, 2024. "Poverty in Latin America: feelings/perceptions Vs. material conditions," Documentos de Trabajo (working papers) 24-01, Instituto de Economía - IECON.
    23. Lanjouw, P. & Marra, M.R., 2018. "Urban poverty across the spectrum of Vietnam’s towns and cities," World Development, Elsevier, vol. 110(C), pages 295-306.
    24. Eugene Nivorozhkin & Anton Nivorozhkin & Ludmila Nivorozhkina & Lilia Ovcharova, 2010. "The urban-rural divide in the perception of the poverty line: the case of Russia," Applied Economics Letters, Taylor & Francis Journals, vol. 17(16), pages 1543-1546.

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