Robustness of Subjective Welfare Analysis in a Poor Developing Country: Madagascar 2001

29 Pages Posted: 20 Apr 2016

See all articles by Michael Lokshin

Michael Lokshin

World Bank - Development Research Group (DECRG); National Research University Higher School of Economics

Nithin Umapathi

World Bank

Stefano Paternostro

World Bank - Poverty Reduction Group (PRMPR)

Date Written: December 2004

Abstract

Lokshin, Umapathi, and Paternostro analyze the subjective perceptions of poverty in Madagascar in 2001 and their relationship to objective poverty indicators. They base their analysis on survey responses to a series of subjective perception questions. The authors extend the existing empirical methodology for estimating subjective poverty lines on the basis of categorical consumption adequacy questions. Based on this methodology they calculate the household-specific, subjective poverty lines and compare the poverty profiles derived from different subjective welfare questions. The results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on objective poverty lines. The subjective welfare analysis can be used in poor developing countries for evaluating socioeconomic and distributional impacts of various policy interventions.

This paper - a product of the Poverty Team, Development Research Group - is part of a larger effort in the group to understand the relationship between subjective and objective economic welfare.

Suggested Citation

Lokshin, Michael and Umapathi, Nithin and Paternostro, Stefano, Robustness of Subjective Welfare Analysis in a Poor Developing Country: Madagascar 2001 (December 2004). Available at SSRN: https://ssrn.com/abstract=636611

Michael Lokshin

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
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HOME PAGE: http://econ.worldbank.org/staff/mlokshin

National Research University Higher School of Economics

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

Nithin Umapathi (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Stefano Paternostro

World Bank - Poverty Reduction Group (PRMPR) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-473-3492 (Phone)
202-473-8466 (Fax)

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