On Some Statistical Methods for Modelling the Incidence of Poverty

Stephen Pudney

Oxford Bulletin of Economics and Statistics, 1999, vol. 61, issue 3, 385-408

Abstract: This paper analyzes a common method of estimating the pattern of individual characteristics associated with poverty – the logit/probit technique applied to a dummy variable identifying those individuals who are below a poverty line. We show that this procedure is seriously flawed by a fundamental logical difficulty and further statistical complications when the poverty line is estimated or when generalized poverty measures are used. An alternative approach is proposed, based on a semi‐parametric series expansion appproximation to the conditional income distribution. Estimation, testing and summary procedures are established and applied to Hungarian survey data.

Date: 1999
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https://doi.org/10.1111/1468-0084.00135

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Working Paper: On Some Statistical Methods for Modelling the Incidence of Poverty
Working Paper: On Some Statistical Methods for Modelling the Incidence of Poverty
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