Global Poverty Estimates: A Sensitivity Analysis
31 Pages Posted: 12 Sep 2011 Last revised: 19 Aug 2014
Date Written: September 12, 2011
Current estimates of global poverty vary substantially across studies. In this paper we undertake a sensitivity analysis to highlight the importance of methodological choices in estimating global poverty. We measure global poverty using different data sources, parametric and nonparametric estimation methods, and multiple poverty lines. Our results indicate that estimates of global poverty vary significantly when they are based alternately on data from household surveys versus national accounts but are relatively consistent across different estimation methods. The decline in poverty over the past decade is found to be robust across methodological choices.
Keywords: global poverty, sensitivity analysis, household surveys, national accounts, income distribution, international poverty line
JEL Classification: C14, D31, F01, I32, O10
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