Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications

Tracking poverty is predicated on the availability of comparable consumption data and reliable price deflators. However, regular series of strictly comparable data are only rarely available. Price deflators are also often missing or disputed. In re...

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Main Authors: Christiaensen, Luc, Lanjouw, Peter, Luoto, Jill, Stifel, David
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110615112641
http://hdl.handle.net/10986/3447
id okr-10986-3447
recordtype oai_dc
spelling okr-10986-34472021-04-23T14:02:09Z Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications Christiaensen, Luc Lanjouw, Peter Luoto, Jill Stifel, David ABSOLUTE TERMS ABSOLUTE VALUE ARREARS ASSET CLASS ASSET CLASSES ASSET HOLDINGS BANK POLICY CHANGES IN POVERTY CONSUMER DURABLES CONSUMPTION DATA CONSUMPTION EXPENDITURES CONSUMPTION MEASURE CONSUMPTION PRICE CONSUMPTION SMOOTHING COUNTRY LEVEL DECLINE IN POVERTY DEPENDENT VARIABLE DEVALUATION DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DROP IN POVERTY DURABLES ECONOMIC GROWTH ERROR TERM ERROR TERMS ESTIMATION TECHNIQUES EXPLANATORY VARIABLES FINANCIAL CRISIS FINANCIAL MARKETS FOOD CONSUMPTION FOOD EXPENDITURE FOOD EXPENDITURES FOOD ITEMS HOUSEHOLD BUDGET HOUSEHOLD CONSUMPTION HOUSEHOLD DEMOGRAPHICS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS HOUSEHOLD WELFARE HOUSING HUMAN DEVELOPMENT HUMAN DEVELOPMENT REPORT INCIDENCE OF POVERTY INCOME INCOME ELASTICITY INCOME POVERTY INCOME SHOCKS INEQUALITY INFLATION INFLATION INDICES INTERNATIONAL BANK INTERNATIONAL DEVELOPMENT LIVING STANDARDS MEASURING POVERTY MEAT MODEL SPECIFICATIONS NATIONAL POVERTY NATIONAL POVERTY LINE NUTRITIONAL STATUS PENSIONS PER CAPITA CONSUMPTION PHYSICAL ASSETS POINT ESTIMATES POLICY RESEARCH POOR POOR AREA POOR AREA DEVELOPMENT PROGRAM POOR PEOPLE POVERTY ANALYSIS POVERTY CHANGE POVERTY CHANGES POVERTY COMPARISONS POVERTY DEBATE POVERTY DECLINE POVERTY DYNAMICS POVERTY ESTIMATES POVERTY GAP POVERTY HEAD POVERTY INCIDENCE POVERTY INCIDENCE ACROSS PROVINCES POVERTY INDICATORS POVERTY LEVELS POVERTY LINES POVERTY MAPPING POVERTY MAPS POVERTY MEASURE POVERTY MEASUREMENT POVERTY MEASURES POVERTY RATE POVERTY RATES POVERTY REDUCTION QUALITY OF LIFE REDUCTION IN POVERTY REGIONAL LEVELS REGIONAL LOCATION REGIONAL PERSPECTIVE RETURNS RURAL RURAL AREAS RURAL DISTRICTS RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL VILLAGES SMALLHOLDER FARMERS STOCKS STRUCTURAL TRANSFORMATION TRANSITION ECONOMIES TRANSITORY INCOME URBAN AREAS URBAN POVERTY VEGETABLES WELFARE INDICATOR WELFARE INDICATORS WELFARE MEASURE WELFARE MONITORING Tracking poverty is predicated on the availability of comparable consumption data and reliable price deflators. However, regular series of strictly comparable data are only rarely available. Price deflators are also often missing or disputed. In response, poverty prediction methods that track consumption correlates as opposed to consumption itself have been developed. These methods typically assume that the estimated relation between consumption and its predictors is stable over time -- an assumption that cannot usually be tested directly. This study analyzes the performance of poverty prediction models based on small area estimation techniques. Predicted poverty estimates are compared with directly observed levels in two country settings where data comparability over time is not a problem. Prediction models that employ either non-staple food or non-food expenditures or a full set of assets as predictors are found to yield poverty estimates that match observed poverty well. This offers some support to the use of such methods to approximate the evolution of poverty. Two further country examples illustrate how an application of the method employing models based on household assets can help to adjudicate between alternative price deflators. 2012-03-19T18:02:38Z 2012-03-19T18:02:38Z 2011-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110615112641 http://hdl.handle.net/10986/3447 English Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5683 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSOLUTE TERMS
ABSOLUTE VALUE
ARREARS
ASSET CLASS
ASSET CLASSES
ASSET HOLDINGS
BANK POLICY
CHANGES IN POVERTY
CONSUMER DURABLES
CONSUMPTION DATA
CONSUMPTION EXPENDITURES
CONSUMPTION MEASURE
CONSUMPTION PRICE
CONSUMPTION SMOOTHING
COUNTRY LEVEL
DECLINE IN POVERTY
DEPENDENT VARIABLE
DEVALUATION
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT RESEARCH
DROP IN POVERTY
DURABLES
ECONOMIC GROWTH
ERROR TERM
ERROR TERMS
ESTIMATION TECHNIQUES
EXPLANATORY VARIABLES
FINANCIAL CRISIS
FINANCIAL MARKETS
FOOD CONSUMPTION
FOOD EXPENDITURE
FOOD EXPENDITURES
FOOD ITEMS
HOUSEHOLD BUDGET
HOUSEHOLD CONSUMPTION
HOUSEHOLD DEMOGRAPHICS
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
INCIDENCE OF POVERTY
INCOME
INCOME ELASTICITY
INCOME POVERTY
INCOME SHOCKS
INEQUALITY
INFLATION
INFLATION INDICES
INTERNATIONAL BANK
INTERNATIONAL DEVELOPMENT
LIVING STANDARDS
MEASURING POVERTY
MEAT
MODEL SPECIFICATIONS
NATIONAL POVERTY
NATIONAL POVERTY LINE
NUTRITIONAL STATUS
PENSIONS
PER CAPITA CONSUMPTION
PHYSICAL ASSETS
POINT ESTIMATES
POLICY RESEARCH
POOR
POOR AREA
POOR AREA DEVELOPMENT PROGRAM
POOR PEOPLE
POVERTY ANALYSIS
POVERTY CHANGE
POVERTY CHANGES
POVERTY COMPARISONS
POVERTY DEBATE
POVERTY DECLINE
POVERTY DYNAMICS
POVERTY ESTIMATES
POVERTY GAP
POVERTY HEAD
POVERTY INCIDENCE
POVERTY INCIDENCE ACROSS PROVINCES
POVERTY INDICATORS
POVERTY LEVELS
POVERTY LINES
POVERTY MAPPING
POVERTY MAPS
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
QUALITY OF LIFE
REDUCTION IN POVERTY
REGIONAL LEVELS
REGIONAL LOCATION
REGIONAL PERSPECTIVE
RETURNS
RURAL
RURAL AREAS
RURAL DISTRICTS
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL VILLAGES
SMALLHOLDER FARMERS
STOCKS
STRUCTURAL TRANSFORMATION
TRANSITION ECONOMIES
TRANSITORY INCOME
URBAN AREAS
URBAN POVERTY
VEGETABLES
WELFARE INDICATOR
WELFARE INDICATORS
WELFARE MEASURE
WELFARE MONITORING
spellingShingle ABSOLUTE TERMS
ABSOLUTE VALUE
ARREARS
ASSET CLASS
ASSET CLASSES
ASSET HOLDINGS
BANK POLICY
CHANGES IN POVERTY
CONSUMER DURABLES
CONSUMPTION DATA
CONSUMPTION EXPENDITURES
CONSUMPTION MEASURE
CONSUMPTION PRICE
CONSUMPTION SMOOTHING
COUNTRY LEVEL
DECLINE IN POVERTY
DEPENDENT VARIABLE
DEVALUATION
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT RESEARCH
DROP IN POVERTY
DURABLES
ECONOMIC GROWTH
ERROR TERM
ERROR TERMS
ESTIMATION TECHNIQUES
EXPLANATORY VARIABLES
FINANCIAL CRISIS
FINANCIAL MARKETS
FOOD CONSUMPTION
FOOD EXPENDITURE
FOOD EXPENDITURES
FOOD ITEMS
HOUSEHOLD BUDGET
HOUSEHOLD CONSUMPTION
HOUSEHOLD DEMOGRAPHICS
HOUSEHOLD HEAD
HOUSEHOLD INCOME
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
HOUSEHOLD WELFARE
HOUSING
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
INCIDENCE OF POVERTY
INCOME
INCOME ELASTICITY
INCOME POVERTY
INCOME SHOCKS
INEQUALITY
INFLATION
INFLATION INDICES
INTERNATIONAL BANK
INTERNATIONAL DEVELOPMENT
LIVING STANDARDS
MEASURING POVERTY
MEAT
MODEL SPECIFICATIONS
NATIONAL POVERTY
NATIONAL POVERTY LINE
NUTRITIONAL STATUS
PENSIONS
PER CAPITA CONSUMPTION
PHYSICAL ASSETS
POINT ESTIMATES
POLICY RESEARCH
POOR
POOR AREA
POOR AREA DEVELOPMENT PROGRAM
POOR PEOPLE
POVERTY ANALYSIS
POVERTY CHANGE
POVERTY CHANGES
POVERTY COMPARISONS
POVERTY DEBATE
POVERTY DECLINE
POVERTY DYNAMICS
POVERTY ESTIMATES
POVERTY GAP
POVERTY HEAD
POVERTY INCIDENCE
POVERTY INCIDENCE ACROSS PROVINCES
POVERTY INDICATORS
POVERTY LEVELS
POVERTY LINES
POVERTY MAPPING
POVERTY MAPS
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
QUALITY OF LIFE
REDUCTION IN POVERTY
REGIONAL LEVELS
REGIONAL LOCATION
REGIONAL PERSPECTIVE
RETURNS
RURAL
RURAL AREAS
RURAL DISTRICTS
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
RURAL VILLAGES
SMALLHOLDER FARMERS
STOCKS
STRUCTURAL TRANSFORMATION
TRANSITION ECONOMIES
TRANSITORY INCOME
URBAN AREAS
URBAN POVERTY
VEGETABLES
WELFARE INDICATOR
WELFARE INDICATORS
WELFARE MEASURE
WELFARE MONITORING
Christiaensen, Luc
Lanjouw, Peter
Luoto, Jill
Stifel, David
Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
geographic_facet The World Region
The World Region
relation Paper is funded by the Knowledge for Change Program (KCP),Policy Research working paper ; no. WPS 5683
description Tracking poverty is predicated on the availability of comparable consumption data and reliable price deflators. However, regular series of strictly comparable data are only rarely available. Price deflators are also often missing or disputed. In response, poverty prediction methods that track consumption correlates as opposed to consumption itself have been developed. These methods typically assume that the estimated relation between consumption and its predictors is stable over time -- an assumption that cannot usually be tested directly. This study analyzes the performance of poverty prediction models based on small area estimation techniques. Predicted poverty estimates are compared with directly observed levels in two country settings where data comparability over time is not a problem. Prediction models that employ either non-staple food or non-food expenditures or a full set of assets as predictors are found to yield poverty estimates that match observed poverty well. This offers some support to the use of such methods to approximate the evolution of poverty. Two further country examples illustrate how an application of the method employing models based on household assets can help to adjudicate between alternative price deflators.
format Publications & Research :: Policy Research Working Paper
author Christiaensen, Luc
Lanjouw, Peter
Luoto, Jill
Stifel, David
author_facet Christiaensen, Luc
Lanjouw, Peter
Luoto, Jill
Stifel, David
author_sort Christiaensen, Luc
title Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
title_short Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
title_full Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
title_fullStr Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
title_full_unstemmed Small Area Estimation-Based Prediction Methods to Track Poverty : Validation and Applications
title_sort small area estimation-based prediction methods to track poverty : validation and applications
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110615112641
http://hdl.handle.net/10986/3447
_version_ 1764387013625118720