Oct. 14, 2003
Speaker: Nithin Umapathi
The study analyses the determinants of subjective poverty in Madagascar and its relationship with objective poverty indicators. The analysis is based on the survey responses to a series of subjective perception questions. The existing empirical methodology of estimation of subjective poverty lines is extended to the cases of categorical consumption adequacy questions. Based on this methodology, the household-specific subjective poverty lines are calculated and the poverty profiles derived from different subjective welfare questions are compared. The results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on absolute poverty lines. Subjective welfare analysis can be used in the poor developing countries for evaluation of socio-economic and distributional impacts of various policy interventions.
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