Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections

Hai Anh H. Dang*, Peter F. Lanjouw

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Panel data are rarely available for developing countries. Departing from traditional pseudo-panel methods that require multiple rounds of cross-sectional data to study poverty mobility at the cohort level, we develop a procedure that works with as few as two survey rounds and produces point estimates of transitions along the welfare distribution at the more disaggregated household level. Validation using Monte Carlo simulations and real cross-sectional and actual panel survey data – from several countries, spanning different income levels and geographical regions – perform well under various deviations from model assumptions. The method could also inform investigation of other welfare outcome dynamics.

Original languageEnglish
Pages (from-to)599-622
Number of pages24
JournalOxford Bulletin of Economics and Statistics
Volume85
Issue number3
DOIs
Publication statusPublished - Jun 2023

Bibliographical note

Funding Information:
*We would like to thank the editor Climent Quintana‐Domeque, two anonymous reviewers, Francois Bourguignon, Fiona Burlig, Alan Dorfman, Chris Elbers, Francisco Ferreira, Gary Fields, Paul Glewwe, Bill Greene, Bo Honore, Stephen Jenkins, Dean Jolliffe, Aart Kraay, Christoph Lakner, Yue Man Lee, Michael Lokshin, Andy McKay, David McKenzie, David Newhouse, Reema Nayar, Franco Peracchi, Tuoc Van Phan, Menno Pradhan, Sergiy Radyakin, Carolina Sanchez‐Paramo, Erik Thorbecke, Renos Vakis, Roy van der Weide, Nobuo Yoshida, and participants at meetings of the Econometric Society in Asia (Singapore) and Latin America (Medellin), International Association for Applied Econometrics (London), International Conference on Panel Data (London), North East Universities Development Consortium (MIT), and conferences and seminars at Cornell, IFPRI, Oxford, University of New South Wales, and World Bank for helpful discussions on earlier versions of this paper. We further thank Renos Vakis and Leonardo Lucchetti for their help with the Peruvian data. We also thank the UK Foreign Commonwealth and Development Office (FCDO) for funding assistance through its various programmes with the World Bank, including the Strategic Research Program (SRP), Knowledge for Change (KCP) Program, and the Data and Evidence for Tackling Extreme Poverty (DEEP) Research Program.

Publisher Copyright:
© 2023 The Authors. Oxford Bulletin of Economics and Statistics published by Oxford University and John Wiley & Sons Ltd.

Funding

*We would like to thank the editor Climent Quintana‐Domeque, two anonymous reviewers, Francois Bourguignon, Fiona Burlig, Alan Dorfman, Chris Elbers, Francisco Ferreira, Gary Fields, Paul Glewwe, Bill Greene, Bo Honore, Stephen Jenkins, Dean Jolliffe, Aart Kraay, Christoph Lakner, Yue Man Lee, Michael Lokshin, Andy McKay, David McKenzie, David Newhouse, Reema Nayar, Franco Peracchi, Tuoc Van Phan, Menno Pradhan, Sergiy Radyakin, Carolina Sanchez‐Paramo, Erik Thorbecke, Renos Vakis, Roy van der Weide, Nobuo Yoshida, and participants at meetings of the Econometric Society in Asia (Singapore) and Latin America (Medellin), International Association for Applied Econometrics (London), International Conference on Panel Data (London), North East Universities Development Consortium (MIT), and conferences and seminars at Cornell, IFPRI, Oxford, University of New South Wales, and World Bank for helpful discussions on earlier versions of this paper. We further thank Renos Vakis and Leonardo Lucchetti for their help with the Peruvian data. We also thank the UK Foreign Commonwealth and Development Office (FCDO) for funding assistance through its various programmes with the World Bank, including the Strategic Research Program (SRP), Knowledge for Change (KCP) Program, and the Data and Evidence for Tackling Extreme Poverty (DEEP) Research Program.

FundersFunder number
Data and Evidence for Tackling Extreme Poverty
World Bank Group
Connecticut Department of Energy and Environmental Protection
Department for International DevelopmentGrant/Award Number: P169210
Department for International Development
Foreign, Commonwealth and Development Office

    Fingerprint

    Dive into the research topics of 'Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections'. Together they form a unique fingerprint.

    Cite this