Estimating Poverty in the Absence of Consumption Data: The Case of Liberia

27 Pages Posted: 20 Apr 2016

See all articles by Andrew Dabalen

Andrew Dabalen

World Bank - Africa

Errol George Graham

World Bank

Kristen Himelein

World Bank - Poverty Reduction and Economic Management

Rose Mungai

World Bank

Date Written: September 1, 2014

Abstract

In much of the developing world, the demand for high frequency quality household data for poverty monitoring and program design far outstrips the capacity of the statistics bureau to provide such data. In these environments, all available data sources must be leveraged. Most surveys, however, do not collect the detailed consumption data necessary to construct aggregates and poverty lines to measure poverty directly. This paper benefits from a shared listing exercise for two large-scale national household surveys conducted in Liberia in 2007 to explore alternative methodologies to estimate poverty indirectly. The first is an asset-based model that is commonly used in Demographic and Health Surveys. The second is a survey-to-survey imputation that makes use of small area estimation techniques. In addition to a standard base model, separate models are estimated for urban and rural areas and an expanded model that includes climatic variables. Special attention is paid to the inclusion of cell phones, with implications for other assets whose cost and availability may be changing rapidly. The results demonstrate substantial limitations with asset-based indexes, but also leave questions as to the accuracy and stability of imputation models.

Keywords: Poverty Monitoring & Analysis, Poverty Lines, Poverty Impact Evaluation, Poverty Assessment, Small Area Estimation Poverty Mapping, Poverty Diagnostics

Suggested Citation

Dabalen, Andrew and Graham, Errol George and Himelein, Kristen and Mungai, Rose, Estimating Poverty in the Absence of Consumption Data: The Case of Liberia (September 1, 2014). World Bank Policy Research Working Paper No. 7024, Available at SSRN: https://ssrn.com/abstract=2492359

Andrew Dabalen (Contact Author)

World Bank - Africa ( email )

1818 H Street
Washington, DC 20433
United States

Errol George Graham

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Kristen Himelein

World Bank - Poverty Reduction and Economic Management ( email )

1818 H Street NW
MSN3-311
Washington, DC 20433
United States

Rose Mungai

World Bank

1818 H Street, NW
Washington, DC 20433
United States

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