Measurements of Poverty in Indonesia : 1996, 1999, and Beyond

Indonesia's economic crisis has caused a consumption expenditures deterioration in the welfare of Indonesians. Focusing on only one dimension of individual, and family welfare - consumption expenditures - the authors analyze two issues associated with the measurement of poverty. The first issue is how to produce regionally consistent poverty lines - that is, how to define a level of spending for each region that produces the same material standard of living. Without comparable data on prices, there is a problem of circularity. Choosing the reference population is important for defining the price level by which to deflate money expenditures to reach the same welfare level, but one needs to know the price level to define the reference population as a group with the same real expenditures. To address the problem of circularity, the authors use an iterative approach to defining poverty, one that produces consistent results across regions. They then use those poverty lines to examine the common "poverty profiles" (by location, sector, and so on). The second issue is more conceptual: how to expand the narrow measure of poverty, based on spending for consumption, with extensions that expand how welfare is measured, and allow more consistent comparisons of different individuals' welfare levels.

Bibliographic Details

Main Authors:	Pradhan, Menno, Suryahadi, Asep, Sumarto, Sudarno, Pritchett, Lant
Language:	en_US
Published:	World Bank, Washington, DC 2000-09
Subjects:	Poverty measurement, Economic crisis, Consumption patterns, Expenditure analysis, Welfare economics, Family welfare, Poverty ratio, Standard of living, Comparative economics, Prices, Deflation, Poverty analysis, associated poverty, basic education, caloric intake, calorie intake, capital investments, characteristics of poor, consistent poverty, consumption bundle, consumption expenditure, consumption expenditures, consumption pattern, consumption patterns, CPI, data sets, decision making, development issues, economic analysis, Education level, educational attainment, elasticities, employment, expenditure data, expenditure function, financial support, food basket, food bundles, food component, food consumption, food energy, food energy intake, food expenditures, food items, food poverty, food poverty line, food poverty lines, Food share, functional form, headcount poverty, headcount poverty rates, high inflation, high poverty, Household characteristics, Household Head, household income, household level, household welfare, human capital, income elasticity, income level, individual level, inflation, insurance, labor market, measured poverty, million people, national average, national level, national poverty, national poverty reduction strategy, negative impact, non-food consumption, non-food component, non-food prices, nutrition, nutritional intake, per capita consumption, policy research, poor, poor households, poor people, population group, poverty changes, poverty estimates, poverty incidence, poverty level, poverty levels, poverty line, poverty line using, poverty lines, poverty measurement, poverty profile, poverty profiles, poverty rate, poverty rates, poverty reduction, primary education, primary school, quantitative data, rank correlation, real incomes, reducing poverty, regional poverty, regional poverty lines, relative prices, resulting poverty lines, rural areas, rural poverty, safety net, sample sizes, short term, Social Development, social status, standard of living, tertiary education, urban areas, utility function, utility level, welfare economics, welfare levels,
Online Access:	http://hdl.handle.net/10986/21356
Tags:	Add Tag No Tags, Be the first to tag this record!