Description: Linking Representative Household Models with Household Surveys for Poverty Analysis: A Comparison of Alternative Methodologies

Linking Representative Household Models with Household Surveys for Poverty Analysis: A Comparison of Alternative Methodologies

The authors compare three approaches to linking representative-household macro models with micro household income data in terms of their implications for measuring the poverty and distributional effects of policy shocks. These approaches are a simp...

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Bibliographic Details
Main Authors:	Agénor, Pierre-Richard, Chen, Derek H.C., Grimm, Michael
Language:	English en_US
Published:	World Bank, Washington, D.C. 2013
Subjects:	ADJUSTMENT POLICIES ADJUSTMENT PROCESS AGGREGATE DEMAND AGRICULTURAL SECTOR AGRICULTURE AVERAGE CONSUMPTION AVERAGE INCOME BALANCE OF PAYMENTS BASE YEAR BETWEEN-GROUP INEQUALITY CAPITAL ACCUMULATION CAPITAL GAINS CD CENTRAL BANK COMMERCIAL BANKS CONSTANT ELASTICITY CONSUMPTION LEVELS DEMAND SIDE DEVELOPING COUNTRY DISPOSABLE INCOME DISTRIBUTION FUNCTION DISTRIBUTION FUNCTIONS DISTRIBUTIONAL EFFECTS ECONOMETRIC MODELS ECONOMETRICS ECONOMIC SHOCKS ECONOMICS EDUCATION LEVEL EDUCATIONAL ATTAINMENT ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EQUILIBRIUM EXCHANGE RATE EXOGENOUS POPULATION GROWTH RATE EXOGENOUS SHOCKS EXPENDITURE SURVEY EXPORTS EXTERNALITY FUNCTIONAL FORMS GINI COEFFICIENT GOVERNMENT EXPENDITURES GROUP MEANS GROWTH RATE GROWTH RATES HEADCOUNT INDEX HEADCOUNT RATIO HOUSEHOLD DATA HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD INCOMES HOUSEHOLD SAMPLE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IMPORTS INCOME INCOME DATA INCOME DIFFERENCES INCOME DISTRIBUTION INCOME INEQUALITY INCOME TAXES INEQUALITY CHANGES INEQUALITY INDICATORS INEQUALITY MEASURES INFORMAL ECONOMY INFORMAL SECTOR INFORMAL SECTORS INFRASTRUCTURE CAPITAL INTEREST RATE JOB SECURITY LABOR COSTS LABOR DEMAND LABOR FORCE LABOR MARKET LIVING STANDARD LOG-NORMAL DISTRIBUTION MACROECONOMIC MODELS MEAN INCOME MEAN INCOMES MEASUREMENT ERRORS MINIMUM WAGE NET OUTPUT OPPORTUNITY COST PAYROLL TAXES PER CAPITA CONSUMPTION POLICY REFORMS POOR HOUSEHOLDS POPULATION GROWTH POPULATION SIZE POSITIVE EXTERNALITY POVERTY ANALYSIS POVERTY GAP POVERTY INDICATORS POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY MEASURES POVERTY REDUCTION POVERTY REDUCTION STRATEGIES POWER PLANTS PRICE CHANGES PRICE INDEXES PRIVATE SECTOR PRIVATE SECTORS PRODUCTION TECHNOLOGY PROFIT MAXIMIZATION PUBLIC CAPITAL PUBLIC EDUCATION PUBLIC GOOD PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PURCHASING POWER REAL GROWTH REAL TERMS REAL WAGE RELATIVE INCOME RELATIVE INCREASE RELATIVE PRICES RETAINED EARNINGS RETURNS TO SCALE RURAL AREAS RURAL ECONOMY RURAL HOUSEHOLDS SAVINGS SIDE EFFECTS SKILLED LABOR SKILLED UNEMPLOYMENT SKILLED UNEMPLOYMENT RATE SKILLED WAGES SKILLED WORKER SKILLED WORKERS STANDARD DEVIATION EQUAL STRUCTURAL REFORMS TAX REVENUES UNEMPLOYMENT UNEMPLOYMENT RATE URBAN AREA URBAN AREAS URBAN POPULATION URBAN POVERTY UTILITY FUNCTION VALUE ADDED WAGES WEIGHTING SCHEME HOUSEHOLD INCOME STANDARD OF LIVING FAMILY INCOME POOR PEOPLE POVERTY ANALYSIS TOOLS POVERTY MONITORING & EVALUATION SCIENTIFIC METHODS TECHNIQUES MODELS POVERTY POLICY MODELS
Online Access:	http://documents.worldbank.org/curated/en/2004/06/4975612/linking-representative-household-models-household-surveys-poverty-analysis-comparison-alternative-methodologies http://hdl.handle.net/10986/14018

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Summary:	The authors compare three approaches to linking representative-household macro models with micro household income data in terms of their implications for measuring the poverty and distributional effects of policy shocks. These approaches are a simple micro-accounting method, an extension of that method to account for changes in employment structure, and the Beta distribution approach. Even though in the authors simulation exercises the three methods do not lead to fundamentally different results in absolute terms, they show that potential differences in the measurement of distributional and poverty effects of policy shocks can be very large.

Linking Representative Household Models with Household Surveys for Poverty Analysis: A Comparison of Alternative Methodologies

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