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.
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dig-okr-1098624152 |
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koha |
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Banco Mundial |
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Estados Unidos |
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US |
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Bibliográfico |
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En linea |
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biblioteca |
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America del Norte |
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Biblioteca del Banco Mundial |
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English en_US |
| topic |
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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION 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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION |
| spellingShingle |
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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION 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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION Wieser, Christina Atamanov, Aziz Uematsu, Hiroki Yoshida, Nobuo Nguyen, Minh Cong Wagner De Azevedo, Joao Pedro Dewina, Reno Robustness of Shared Prosperity Estimates |
| description |
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. |
| format |
Working Paper |
| topic_facet |
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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION |
| author |
Wieser, Christina Atamanov, Aziz Uematsu, Hiroki Yoshida, Nobuo Nguyen, Minh Cong Wagner De Azevedo, Joao Pedro Dewina, Reno |
| author_facet |
Wieser, Christina Atamanov, Aziz Uematsu, Hiroki Yoshida, Nobuo Nguyen, Minh Cong Wagner De Azevedo, Joao Pedro Dewina, Reno |
| author_sort |
Wieser, Christina |
| title |
Robustness of Shared Prosperity Estimates |
| title_short |
Robustness of Shared Prosperity Estimates |
| title_full |
Robustness of Shared Prosperity Estimates |
| title_fullStr |
Robustness of Shared Prosperity Estimates |
| title_full_unstemmed |
Robustness of Shared Prosperity Estimates |
| title_sort |
robustness of shared prosperity estimates |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016-03 |
| url |
http://documents.worldbank.org/curated/en/2016/03/26089784/robustness-shared-prosperity-estimates-different-methodological-choices-matter https://hdl.handle.net/10986/24152 |
| work_keys_str_mv |
AT wieserchristina robustnessofsharedprosperityestimates AT atamanovaziz robustnessofsharedprosperityestimates AT uematsuhiroki robustnessofsharedprosperityestimates AT yoshidanobuo robustnessofsharedprosperityestimates AT nguyenminhcong robustnessofsharedprosperityestimates AT wagnerdeazevedojoaopedro robustnessofsharedprosperityestimates AT dewinareno robustnessofsharedprosperityestimates AT wieserchristina howdifferentmethodologicalchoicesmatter AT atamanovaziz howdifferentmethodologicalchoicesmatter AT uematsuhiroki howdifferentmethodologicalchoicesmatter AT yoshidanobuo howdifferentmethodologicalchoicesmatter AT nguyenminhcong howdifferentmethodologicalchoicesmatter AT wagnerdeazevedojoaopedro howdifferentmethodologicalchoicesmatter AT dewinareno howdifferentmethodologicalchoicesmatter |
| _version_ |
1809105375192940544 |
| spelling |
dig-okr-10986241522024-08-07T20:01:07Z Robustness of Shared Prosperity Estimates How Different Methodological Choices Matter Wieser, Christina Atamanov, Aziz Uematsu, Hiroki Yoshida, Nobuo Nguyen, Minh Cong Wagner De Azevedo, Joao Pedro Dewina, Reno 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 DEVELOPING COUNTRIES POVERTY HEADCOUNT WELFARE GLOBAL LEVEL NATIONAL POVERTY POLICY DISCUSSIONS DISTRIBUTION VARIABLES DEVELOPMENT GOALS 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 INCOME GROWTH AVERAGE GROWTH RATE CONSUMPTION EXPENDITURES DATA QUALITY GLOBAL POVERTY POVERTY INCIDENCE CRITERIA POVERTY HEADCOUNT RATES PER CAPITA CONSUMPTION PER CAPITA GROWTH HOUSEHOLD INCOME POVERTY MEASUREMENT HOUSEHOLD SURVEYS SIGNIFICANT IMPACT GLOBAL LEVEL GROWTH PERFORMERS INCOME LEVELS PRODUCT WELFARE INDICATORS UTILITY POVERTY HEADCOUNT RATE AVERAGE GROWTH POLICY RESEARCH DEVELOPMENT POLICY INTERNATIONAL COMPARABILITY PURCHASING POWER INCOME DATA REDUCING INEQUALITY POVERTY LINES POVERTY DATA CONSUMPTION DATA AVAILABILITY COUNTRY LEVEL POVERTY COMPARISONS POPULATION SHARE DEFLATORS PER CAPITA GROWTH POVERTY RATES POVERTY MEASUREMENT POVERTY RATE LORENZ CURVE VALUE POVERTY LINE HOUSEHOLD SURVEYS NEGATIVE INCOMES PURCHASING POWER GROWTH RATES DEVELOPING WORLD HOUSEHOLD SIZE 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 PER CAPITA INCOME INFLATION RATES FUNCTIONAL FORMS POVERTY INDICATORS LORENZ CURVE TRADE POOR POPULATION GROWTH RATE EXTREME POVERTY ABSOLUTE TERMS TRADE‐OFFS SIGNIFICANT DIFFERENCES POVERTY ABSOLUTE TERMS GINI COEFFICIENT HOUSEHOLD CONSUMPTION INCOME DATA CONSUMER PRICE INDEX POLICY RESEARCH COUNTRY SPECIFIC POVERTY RATE HIGH GROWTH POOR PRIMARY EDUCATION MEASURING POVERTY POVERTY HEADCOUNT RATES POVERTY HEADCOUNT RATE OPERATIONAL WORK PRICE LEVELS MEAN EXPENDITURE COUNTRY SPECIFIC DEVELOPMENT INDICATORS ECONOMIC GROWTH MIDDLE INCOME COUNTRIES SIGNIFICANT CORRELATION PRICES DEVELOPMENT POLICY INEQUALITY GINI COEFFICIENT GROWTH HOUSEHOLD SURVEY NEGATIVE CORRELATION 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. 2016-04-26T16:49:07Z 2016-04-26T16:49:07Z 2016-03 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/2016/03/26089784/robustness-shared-prosperity-estimates-different-methodological-choices-matter https://hdl.handle.net/10986/24152 English en_US Policy Research Working Paper;No. 7611 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |