Income mis-measurement and the estimation of poverty rates. An analysis of income poverty in Albania. ISER Working Paper 2006-35

Pudney, Stephen and Francavilla, Francesca (2006) Income mis-measurement and the estimation of poverty rates. An analysis of income poverty in Albania. ISER Working Paper 2006-35. Working Paper. University of Essex, Colchester.

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Abstract

We investigate the reliability of estimated income poverty profiles for Albanian survey data. We find evidence that a significant number of households with low reported incomes have relatively high living standards and are consequently misclassified as poor. We extend the theory of contaminated distributions to incorporate direct measures of well-being as indicators of data contamination, and develop a new nonparametric approach for constructing bounds on conditional poverty rates. We find very large upward biases in measured income poverty under the assumption of independence between living standards and the misreporting propensity, but a wide range of uncertainty under more general conditions.

Item Type: Monograph (Working Paper)
Subjects: University of Westminster > Architecture and the Built Environment > Policy Studies Institute (PSI) (No longer in use)
Depositing User: Miss Nina Watts
Date Deposited: 29 Jun 2010 10:08
Last Modified: 29 Jun 2010 10:08
URI: http://westminsterresearch.wmin.ac.uk/id/eprint/8165

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