Estimating Utility Consistent Poverty Lines
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Estimating Utility Consistent Poverty Lines
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Author : Channing Arndt
language : en
Publisher:
Release Date : 2014
Estimating Utility Consistent Poverty Lines written by Channing Arndt and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
The "Cost of Basic Needs" (CBN) approach to drawing consumption-based poverty lines is widely applied and lays credible claim to being the best practice for estimating poverty measures. Unfortunately, a growing mass of evidence indicates that poverty estimates obtained under the CBN approach are often demonstrably utility inconsistent. Here, we introduce an information theoretic approach for estimating utility-consistent poverty lines. An example of the approach is provided for the case of Mozambique. The approach represents a powerful addition to the poverty analyst's tool kit and enhances the attractiveness of the CBN approach for practical poverty measurement problems.
Estimating Utility Consistent Poverty Lines With Applications To Egypt And Mozambique
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Author : Channing Arndt
language : en
Publisher:
Release Date : 2014
Estimating Utility Consistent Poverty Lines With Applications To Egypt And Mozambique written by Channing Arndt and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
A fundamental premise of absolute poverty lines is that they represent the same level of utility through time and space. Disturbingly, a series of recent studies in middle- and low-income economies show that even carefully derived poverty lines rarely satisfy this premise. This article proposes an information-theoretic approach to estimating cost-of-basic-needs (CBN) poverty lines that are utility consistent. Applications to date illustrate that utility-consistent poverty measurements derived from the proposed approach and those derived from current CBN best practices often differ substantially, with the current approach tending to systematically overestimate (underestimate) poverty in urban (rural) zones.
Nutrition As A Basic Need A New Method For Utility Consistent And Nutritionally Adequate Food Poverty Lines
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Author : Mahrt, Kristi
language : en
Publisher: Intl Food Policy Res Inst
Release Date : 2022-05-06
Nutrition As A Basic Need A New Method For Utility Consistent And Nutritionally Adequate Food Poverty Lines written by Mahrt, Kristi and has been published by Intl Food Policy Res Inst this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022-05-06 with Political Science categories.
In most countries and globally, malnutrition rates exceed poverty rates. The World Bank estimates that about 9 percent (689 million) of the global population is poor, yet an estimated 25 percent (2 billion people) suffer from micronutrient deficiencies. Such a discrepancy begs the question: Do standard poverty metrics poorly reflect nutritional needs? The most prevalent methodology for measuring poverty in low- and middle-income countries – the cost of basic needs approach – estimates food baskets that satisfy a dietary energy standard while reflecting consumption patterns of poor households. However, poor households typically consume monotonous diets characterized by large quantities of calorically cheap staple foods that are poor sources of nutrients. This reality creates a circular logic whereby the cost of basic nutritional needs is estimated from populations who are consuming nutritionally inadequate diets. We argue that a healthy diet is a basic need and that the standard used to calculate cost of basic needs food poverty lines should be expanded to satisfy nutritional dietary recommendations, while continuing to reflect context-specific dietary patterns. We develop an approach to estimate food poverty lines that satisfies the food group proportionality associated with healthy diet recommendations while also adhering to observed within-food group consumption patterns of poor households. Furthermore, we address the limitation of estimating a single national food basket – which fails to capture variation in local consumption patterns driven by preferences, availability, and relative prices – by estimating utility-consistent regional poverty lines. We demonstrate the approach using data from Myanmar. Energy-based poverty lines significantly underestimate the cost of acquiring a healthy diet, are severely deficient in multiple micronutrients, and therefore result in a drastic underestimate of the rate of poverty based on a healthy diet standard. The resulting higher cost of basic needs also has important implications for inclusive economic growth strategies and nutrition-sensitive food policies and social protection.
Consistent Poverty Comparisons And Inference
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Author : Channing Arndt
language : en
Publisher:
Release Date : 2014
Consistent Poverty Comparisons And Inference written by Channing Arndt and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2014 with categories.
Building upon the cost of basic needs (CBN) approach, an integrated approach to making consumption-based poverty comparisons is presented. This approach contains two principal modifications to the standard CBN approach. The first permits the development of multiple poverty bundles that are utility consistent. The second recognizes that the poverty line itself is a random variable whose variation influences the degree of confidence in poverty measures. We illustrate the empirical importance of these two methodological changes for the case of Mozambique. With utility consistency imposed, estimated poverty rates tend to be systematically higher in rural areas and lower in urban areas. We also find that the true confidence intervals on the poverty estimates-those incorporating poverty line variance-tend to be considerably larger than those that ignore poverty line variance. Finally, we show that these two methodological changes interact. Specifically, we find that imposing utility consistency on poverty bundles tends to tighten confidence intervals, sometimes dramatically, on provincial poverty estimates. We conclude that this revised approach represents an important advance in poverty analysis. The revised approach is straightforward and directly applicable in empirical work.
On The Utility Consistency Of Poverty Lines
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Author : Martin Ravallion
language : en
Publisher: World Bank Publications
Release Date : 2003
On The Utility Consistency Of Poverty Lines written by Martin Ravallion and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003 with Linea de pobreza - Rusia categories.
Although poverty lines are widely used as deflators for intergroup welfare comparisons, their internal consistency is rarely given close scrutiny. A priori considerations suggest that commonly used methods cannot be relied on to yield poverty lines that are consistent in terms of utility, or for capabilities more generally. The theory of revealed preference offers testable implications of utility consistency for "poverty baskets" under homogeneous preferences. A case study of Russia's official poverty lines reveals numerous violations of revealed preference criteria--violations that are not solely attributable to heterogeneity in preferences associated with climatic differences. This paper--a product of the Poverty Team, Development Research Group--is part of a larger effort in the group to improve poverty measurement methodology.
Measuring Poverty And Wellbeing In Developing Countries
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Author : Channing Arndt
language : en
Publisher: OUP Oxford
Release Date : 2016-12-15
Measuring Poverty And Wellbeing In Developing Countries written by Channing Arndt and has been published by OUP Oxford this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016-12-15 with Business & Economics categories.
This is an open access title available under the terms of a CC BY-NC-SA 3.0 IGO licence. It is free to read at Oxford Scholarship Online and offered as a free PDF download from OUP and selected open access locations. Detailed analyses of poverty and wellbeing in developing countries, based on household surveys, have been ongoing for more than three decades. The large majority of developing countries now regularly conduct a variety of household surveys, and the information base in developing countries with respect to poverty and wellbeing has improved dramatically. Nevertheless, appropriate measurement of poverty remains complex and controversial. This is particularly true in developing countries where (i) the stakes with respect to poverty reduction are high; (ii) the determinants of living standards are often volatile; and (iii) related information bases, while much improved, are often characterized by significant non-sample error. It also remains, to a surprisingly high degree, an activity undertaken by technical assistance personnel and consultants based in developed countries. This book seeks to enhance the transparency, replicability, and comparability of existing practice. In so doing, it also aims to significantly lower the barriers to entry to the conduct of rigorous poverty measurement and increase the participation of analysts from developing countries in their own poverty assessments. The book focuses on two domains: the measurement of absolute consumption poverty and a first order dominance approach to multidimensional welfare analysis. In each domain, it provides a series of flexible computer codes designed to facilitate analysis by allowing the analyst to start from a flexible and known base. The book volume covers the theoretical grounding for the code streams provided, a chapter on 'estimation in practice', a series of 11 case studies where the code streams are operationalized, as well as a synthesis, an extension to inequality, and a look forward.
On The Utility Consistency Of Poverty Lines
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Author : Martin Ravallion
language : en
Publisher:
Release Date : 2016
On The Utility Consistency Of Poverty Lines written by Martin Ravallion and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
Although poverty lines are widely used as deflators for intergroup welfare comparisons, their internal consistency is rarely given close scrutiny. A priori considerations suggest that commonly used methods cannot be relied on to yield poverty lines that are consistent in terms of utility, or for capabilities more generally. The theory of revealed preference offers testable implications of utility consistency for quot;poverty basketsquot; under homogeneous preferences. A case study of Russia's official poverty lines reveals numerous violations of revealed preference criteria - violations that are not solely attributable to heterogeneity in preferences associated with climatic differences.This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to improve poverty measurement methodology.
Poverty Lines In Theory And Practice
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Author : Martin Ravallion
language : en
Publisher: World Bank Publications
Release Date : 1998-01-01
Poverty Lines In Theory And Practice written by Martin Ravallion and has been published by World Bank Publications this book supported file pdf, txt, epub, kindle and other format this book has been release on 1998-01-01 with Business & Economics categories.
A poverty line helps focus the attention of governments and civil society on the living conditions of the poor. This paper offers a critical overview of alternative approaches to setting poverty lines. In reviewing the methods found in practice, the paper tries to throw light on, and go some way toward resolving, ongoing debates about poverty measurement, emphasizing those debates which would appear to have greatest bearing on policy discussions.
Poverty Comparisons
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Author : M. Ravallion
language : en
Publisher: Taylor & Francis
Release Date : 2013-10-08
Poverty Comparisons written by M. Ravallion and has been published by Taylor & Francis this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013-10-08 with Business & Economics categories.
Poverty comparisons - such as whether poverty has increased, or where it is greatest, are typically clouded in conceptual and methodological uncertainties. How should individual well-being be assessed in deciding who is poor? Is a household survey a reliable guide? Where should the poverty line be drawn, and does the choice matter? This monograph surveys the issues that need to be considered in answering these questions, providing an accessible introduction to the most recent literature. The strengths and weaknesses of past methods are discussed, and a summary of methodological recommendations is given. A number of new analytical tools are described which can greatly facilitate poverty comparisons, recognising the uncertainties involved.
Estimating International Poverty Lines From Comparable National Thresholds
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Author : Dean Jolliffe
language : en
Publisher:
Release Date : 2020
Estimating International Poverty Lines From Comparable National Thresholds written by Dean Jolliffe and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.
World Bank's international poverty line of $1.90/day, at 2011 purchasing power parity, is based on a collection of national poverty lines, which were originally used to set the international poverty line of $1.25/day at 2005 purchasing power parity. This paper proposes an approach for estimating a more recent, complete, and comparable collection of national poverty thresholds from reported national poverty rates. The paper presents a set of international poverty lines based on this new database of national poverty lines. In contrast to the lines used to estimate the $1.90 international poverty line, this approach produces national poverty lines that are (1) consistent with national poverty rates, (2) expressed in common units, and (3) provide greater support to the estimated international poverty line. These national poverty lines are used to estimate an extreme international poverty line, and three higher lines that are more relevant for higher-income countries. A key finding provides evidence of the robustness and relevance of the $1.90 international poverty line as a measure of extreme poverty for low-income countries.