Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections
This method could also inform investigation of other welfare outcome dynamics.
Abstract
Panel data are rarely available for developing countries. Departing from traditional pseudo鈥恜anel methods that require multiple rounds of cross鈥恠ectional 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鈥恠ectional and actual panel survey data 鈥� from several countries, spanning different income levels and geographical regions 鈥� perform well under various deviations from model assumptions. The method could also inform investigation of other welfare outcome dynamics.
This article is part of the Data and Evidence to Tackle Extreme Poverty (DEEP) programme
Citation
Dang, Hai-Anh H., and Peter F. Lanjouw. June 2023. 鈥淢easuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross Sections.鈥� Oxford Bulletin of Economics and Statistics 85(3): 599鈥�622.