Estimating Poverty Over Time and Space: Construction of a time-variant poverty index for Costa Rica

Romina Cavatassi, Benjamin Davis and Leslie Lipper
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Romina Cavatassi: Agricultural and Development Economics Division, Food and Agriculture Organization
Benjamin Davis: Agricultural and Development Economics Division, Food and Agriculture Organization
Leslie Lipper: Agricultural and Development Economics Division, Food and Agriculture Organization

No 04-21, Working Papers from Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA)

Abstract: This paper presents the construction of a spatially explicit, nationally disaggregated measure of poverty over time in Costa Rica. The paper first describes the two possible methods considered for the construction of a poverty map: principal component analysis (PCA) versus small area estimation. Next, reasons for choosing PCA and a description of its application both at one point in time (1973) and over time are presented together with the resulting poverty maps. The methodology applied represents a methodological innovation in that the resulting poverty map is time variant rather than concentrated in a single moment in time. A comparison of the results obtainable using various techniques and a discussion on the relative merits of the various options available concludes the paper.

Keywords: Poverty Mapping; Principal Component Analysis; Time-variant Poverty Index; Small-area Estimation. (search for similar items in EconPapers)
JEL-codes: C43 I32 C31 (search for similar items in EconPapers)
Date: 2004
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