Do Adult Equivalence Scales Matter in Poverty Estimates? A Northern Ghana Case Study and Simulation

Greg Regier, Yacob A. Zereyesus, Timothy Dalton and Vincent Amanor‐Boadu
Authors registered in the RePEc Author Service: Vincent Amanor-Boadu

Journal of International Development, 2019, vol. 31, issue 1, 80-100

Abstract: We test the sensitivity of per capita expenditures to several methods of per adult equivalent expenditures to control for economies of scale and household composition. Simulation analysis determines the indifference point between per capita expenditures and per adult equivalent measures in order to identify the factors contributing to the dominance of one measure over another. Results indicate that overall poverty and inequality measures in northern Ghana are highly sensitive to the use of equivalence scales. Poverty measures for children and the elderly and in urban and rural areas are also sensitive to equivalence scales. © 2018 John Wiley & Sons, Ltd.

Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:wly:jintdv:v:31:y:2019:i:1:p:80-100

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