Poverty and Permanent Income: A Methodology for Cross-Section Data

Ramses Abul Naga and Enrico Bolzani

Cahiers de Recherches Economiques du Département d'économie from Université de Lausanne, Faculté des HEC, Département d’économie

Abstract: If the set of households which are income poor does not fully overlap with the set of the consumption poor, it could well be that income and consumption expenditure convey different information regarding an unobserved variable on the basis of which families allocate their resources intertemporally. This paper presents a methodology for predicting the unobserved permanent incomes of households using multiple welfare indicators typically available in cross-section data. The methods are illustrated using data from the Swiss Consumption Survey of 1990.

Keywords: poverty; permanent income; latent variables; prediction; Switzerland (search for similar items in EconPapers)
JEL-codes: C2 C3 D6 I3 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2000-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Forthcoming in Multidimensional Approaches to Poverty Measurement : Theory and Applications, Deutsch, J. and Silber, J. (eds), Edward Elgar, London

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Related works:
Journal Article: Poverty and Permanent Income: A Methodology for Cross-Section Data (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:lau:crdeep:00.26

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