Estimating poverty transitions using repeated cross-sections: a three-country validation exercise

This paper validates a recently proposed method to estimate intra-generational poverty transitions through repeated cross-sectional surveys. The technique allows the creation of a "synthetic panel" - done by predicting future or past household income or consumption using a set of simple mo...

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Autores principales: Cruces, Guillermo Antonio, Lanjouw, Peter, Lucchetti, Leonardo Ramiro, Perova, Elizaveta, Vakis, Renos, Viollaz, Mariana
Formato: Articulo
Lenguaje:Inglés
Publicado: 2014
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/127146
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id I19-R120-10915-127146
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Chile
Poverty dynamics
Poverty transitions
Nicaragua
Perú
Poverty
Pseudo-panels
Synthetic panels
spellingShingle Ciencias Económicas
Chile
Poverty dynamics
Poverty transitions
Nicaragua
Perú
Poverty
Pseudo-panels
Synthetic panels
Cruces, Guillermo Antonio
Lanjouw, Peter
Lucchetti, Leonardo Ramiro
Perova, Elizaveta
Vakis, Renos
Viollaz, Mariana
Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
topic_facet Ciencias Económicas
Chile
Poverty dynamics
Poverty transitions
Nicaragua
Perú
Poverty
Pseudo-panels
Synthetic panels
description This paper validates a recently proposed method to estimate intra-generational poverty transitions through repeated cross-sectional surveys. The technique allows the creation of a "synthetic panel" - done by predicting future or past household income or consumption using a set of simple modeling and error structure assumptions - and thus permits the estimation of lower and upper bounds of the joint distribution of poverty and non-poverty transitions. We validate the approach in three different settings where good panel data exist (Chile, Nicaragua, and Peru). In doing so, we also carry out a number of refinements to the validation procedure and expand the set of tests undertaken. The results are broadly encouraging in estimating the joint probabilities of poverty and non-poverty transitions between two periods in all three contexts. The approach is also robust to a broad set of additional “stress” and sensitivity tests, especially in cases where richer model specifications can be estimated. Finally, we test whether the scope of synthetic panels can be expanded in three new directions, namely comparing between income and consumption welfare measures; the robustness to longer intervals (the approach does especially well in predicting long-term poverty transition patterns); and the robustness to two transition lines instead of one. Overall, the results lend support to the application of this approach to settings where panel data are absent.
format Articulo
Articulo
author Cruces, Guillermo Antonio
Lanjouw, Peter
Lucchetti, Leonardo Ramiro
Perova, Elizaveta
Vakis, Renos
Viollaz, Mariana
author_facet Cruces, Guillermo Antonio
Lanjouw, Peter
Lucchetti, Leonardo Ramiro
Perova, Elizaveta
Vakis, Renos
Viollaz, Mariana
author_sort Cruces, Guillermo Antonio
title Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
title_short Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
title_full Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
title_fullStr Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
title_full_unstemmed Estimating poverty transitions using repeated cross-sections: a three-country validation exercise
title_sort estimating poverty transitions using repeated cross-sections: a three-country validation exercise
publishDate 2014
url http://sedici.unlp.edu.ar/handle/10915/127146
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