Robustness of Shared Prosperity Estimates

This paper is the first to systematically test the robustness of shared prosperity estimates to different methodological choices using a sample of countries from all regions in the world. The tests that are conducted include grouped versus microdata, nominal welfare aggregate versus adjustment for spatial price variation, and different treatment of income with negative and zero values. The empirical results reveal an only minimal impact of the proposed tests on shared prosperity estimates. Nevertheless, there are important caveats. First, spatial adjustment can change the ranking of households, affecting the distribution of the population in the bottom 40 percent. Second, the negligible impact of spatial deflation holds only if price adjustments are carried out consistently over time. Finally, the treatment of negative and zero income numbers can potentially lead to substantial differences in shared prosperity, depending on the magnitude of negative income and the share of households with negative and zero numbers across years.

Bibliographic Details

Main Authors:	Wieser, Christina, Atamanov, Aziz, Uematsu, Hiroki, Yoshida, Nobuo, Nguyen, Minh Cong, Wagner De Azevedo, Joao Pedro, Dewina, Reno
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-03
Subjects:	PER CAPITA CONSUMPTION, LIVING STANDARDS, GROWTH RATES, GROWTH RATE, CONSUMER PRICE INDEX, CONSUMPTION EXPENDITURES, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, SIGNIFICANT CORRELATION, CAPITA INCOME, POVERTY LINE, FUNCTIONAL FORMS, COUNTRY LEVEL, ECONOMIC GROWTH, BASIC EDUCATION, PRICE LEVELS, AGGREGATE ‐ INCOME, DEVELOPING COUNTRIES, DEFLATION, AVERAGE GROWTH, INCOME, POVERTY RATES, POVERTY ESTIMATES, INCOME GROWTH, DEVELOPMENT GOALS, LABOR FORCE, POVERTY HEADCOUNT, WELFARE, GLOBAL LEVEL, NATIONAL POVERTY, POLICY DISCUSSIONS, DISTRIBUTION, VARIABLES, POVERTY INDICATORS, GLOBAL POVERTY, SIGNIFICANT IMPACT, CONFLICT, MEASURES, TRENDS, POVERTY REDUCTION, HOUSEHOLD INCOME, EMPIRICAL ANALYSIS, REDUCING INEQUALITY, CHOICE, AVERAGE GROWTH RATE, DEVELOPING WORLD, WELFARE INDICATORS, EMPIRICAL RESULTS, ABSOLUTE DIFFERENCE, PER CAPITA INCOME, MEASURING POVERTY, EXTREME POVERTY, DATA QUALITY, POVERTY INCIDENCE, CRITERIA, POVERTY HEADCOUNT RATES, PER CAPITA GROWTH, POVERTY MEASUREMENT, HOUSEHOLD SURVEYS, GROWTH PERFORMERS, INCOME LEVELS, PRODUCT, UTILITY, POVERTY HEADCOUNT RATE, POLICY RESEARCH, DEVELOPMENT POLICY, INTERNATIONAL COMPARABILITY, PURCHASING POWER, INCOME DATA, POVERTY LINES, POVERTY DATA, CONSUMPTION, DATA AVAILABILITY, POVERTY COMPARISONS, POPULATION SHARE, DEFLATORS, POVERTY RATE, LORENZ CURVE, VALUE, NEGATIVE INCOMES, INCOME DISTRIBUTION, EDUCATION LEVEL, INCOMES, POSITIVE CORRELATION, RURAL, MEASUREMENT, HIGH GROWTH RATE, HIGH INCOME COUNTRIES, MEAN CONSUMPTION, MEAN EXPENDITURE, PER CAPITA GROWTH RATE, EMPIRICAL RESEARCH, INFLATION RATES, TRADE, POOR POPULATION, ABSOLUTE TERMS, TRADE‐OFFS, SIGNIFICANT DIFFERENCES, POVERTY, GINI COEFFICIENT, HOUSEHOLD CONSUMPTION, COUNTRY SPECIFIC, HIGH GROWTH, POOR, PRIMARY EDUCATION, OPERATIONAL WORK, DEVELOPMENT INDICATORS, MIDDLE INCOME COUNTRIES, PRICES, INEQUALITY, GROWTH, NEGATIVE CORRELATION,
Online Access:	http://documents.worldbank.org/curated/en/2016/03/26089784/robustness-shared-prosperity-estimates-different-methodological-choices-matter https://hdl.handle.net/10986/24152
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