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Poverty PPPs

Poverty PPPs is amongst the key research areas under the ICP 2011 work program. Relevant work entails improving survey frameworks and instruments for price surveys on the main household consumption products as well as education and health services. The survey framework for household consumption prices will be reviewed to enhance the quality and consistency of household survey data, better delineate urban and rural areas wherever applicable, improve spatial pricing and geo-referencing sampled outlets. A “core set of data” required for poverty purposes will be identified and included in the relevant price surveys.

This was already a major component of the 2005 ICP global round which aimed to compute poverty-specific PPPs to estimate poverty incidences, with the objective of monitoring progress towards meeting the Millennium Development Goals. The research then undertaken in this area focused on: (1) identifying a suitable classification of expenditure categories for purposes of cross-country poverty comparisons, and estimating expenditure weights breakdown for countries that do not have reliable and timely household expenditure data with national survey coverage, (2) establishing correspondence between the detailed expenditure estimates from household surveys and the standard 90 plus consumption classifications of the ICP and (3) developing an aggregation methodology for poverty PPP calculation. The work on poverty PPP was managed and funded separately from the regular ICP initiative and recorded the following reference papers and presentations:

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