Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80908
Authors: 
Arndt, Channing
Hussain, M. Azhar
Salvucci, Vincenzo
Tarp, Finn
Østerdal, Lars P.
Year of Publication: 
2013
Series/Report no.: 
WIDER Working Paper 2013/053
Abstract: 
The poverty mapping methodology for estimating welfare rankings from small areas has proven to be useful in guiding allocation of government funds, regional planning, and general policy formulation. Nevertheless, poverty mapping also suffers from a series of by now well recognized shortcomings. We apply an approach based on first order dominance (FOD) to small area estimation. Five advantages to the FOD approach are highlighted. First, it can serve as a complement to, substitute for, and/or extension of the poverty mapping methodology. Second, it directly uses census data with a minimum of assumptions imposed. Third, the methodology is straightforward to implement and the concepts are intuitive. Fourth, the FOD approach is multi-dimensional allowing for a broader conception of poverty. Finally, FOD indicators can be chosen that relate directly to public expenditure priorities We apply the approach to census data from Mozambique for 1997 and 2007 and compare results with the poverty mapping methodology. We conclude that the FOD approach is well suited to small area estimation.
Subjects: 
small area estimation
welfare
poverty mapping
multidimensional poverty measurement
first order dominance
Mozambique
JEL: 
C15
C81
I32
ISBN: 
978-92-9230-630-4
Document Type: 
Working Paper

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