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Using an asset index to simulate household income

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  • Harttgen, Kenneth
  • Vollmer, Sebastian

Abstract

Commonly available survey data for developing countries often do not include income or expenditure data. This data limitation puts severe constraints on standard poverty and inequality analyses. We provide a simple approach to simulate household income based on publicly available Demographic and Health Surveys (DHS) and macroeconomic data. We illustrate our approach with DHS data for Bolivia, Indonesia and Zambia.

Suggested Citation

  • Harttgen, Kenneth & Vollmer, Sebastian, 2013. "Using an asset index to simulate household income," Economics Letters, Elsevier, vol. 121(2), pages 257-262.
    • Handle: RePEc:eee:ecolet:v:121:y:2013:i:2:p:257-262
    DOI: 10.1016/j.econlet.2013.08.014
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    References listed on IDEAS

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    1. Kenneth Harttgen & Mark Misselhorn, 2006. "A Multilevel Approach to Explain Child Mortality and Undernutrition in South Asia and Sub-Saharan Africa," Ibero America Institute for Econ. Research (IAI) Discussion Papers 152, Ibero-America Institute for Economic Research.
    2. Alessandro Tarozzi & Aprajit Mahajan, 2005. "Child Nutrition in India in the Nineties: A Story of Increased Gender Inequality?," Discussion Papers 04-029, Stanford Institute for Economic Policy Research.
    3. Deon Filmer & Kinnon Scott, 2012. "Assessing Asset Indices," Demography, Springer;Population Association of America (PAA), vol. 49(1), pages 359-392, February.
    4. Bicego, George & Rutstein, Shea & Johnson, Kiersten, 2003. "Dimensions of the emerging orphan crisis in sub-Saharan Africa," Social Science & Medicine, Elsevier, vol. 56(6), pages 1235-1247, March.
    5. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    6. David Stifel & Luc Christiaensen, 2007. "Tracking Poverty Over Time in the Absence of Comparable Consumption Data," The World Bank Economic Review, World Bank, vol. 21(2), pages 317-341, June.
    7. Kenneth Harttgen & Stephan Klasen & Sebastian Vollmer, 2013. "An African Growth Miracle? Or: What do Asset Indices Tell Us About Trends in Economic Performance?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 59, pages 37-61, October.
    8. Narayan Sastry, 2004. "Trends in socioeconomic inequalities in mortality in developing countries: The case of child Survival in São Paulo, Brazil," Demography, Springer;Population Association of America (PAA), vol. 41(3), pages 443-464, August.
    9. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
    10. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    11. David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(2), pages 229-260, June.
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    Cited by:

    1. Jolliffe, Dean & Baah, Samuel Kofi Tetteh, 2024. "Identifying the poor – Accounting for household economies of scale in global poverty estimates," World Development, Elsevier, vol. 179(C).
    2. Harttgen, Kenneth & Klasen, Stephan, 2012. "A Household-Based Human Development Index," World Development, Elsevier, vol. 40(5), pages 878-899.
    3. Janz, Teresa & Augsburg, Britta & Gassmann, Franziska & Nimeh, Zina, 2023. "Leaving no one behind: Urban poverty traps in Sub-Saharan Africa," World Development, Elsevier, vol. 172(C).
    4. Alizée McLorg & Kennedy Omolo & Peter Sifuna & Andrea Shaw & Bhavneet Walia & David A. Larsen, 2021. "Examining Wealth Trends in Kombewa, Kenya," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 631-651, September.
    5. Mathieu J. P. Poirier & Karen A. Grépin & Michel Grignon, 2020. "Approaches and Alternatives to the Wealth Index to Measure Socioeconomic Status Using Survey Data: A Critical Interpretive Synthesis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 1-46, February.
    6. Kenneth Harttgen & Stephan Klasen & Sebastian Vollmer, "undated". "Economic Growth and Child Undernutrition in Africa," UNDP Africa Policy Notes 2012-013, United Nations Development Programme, Regional Bureau for Africa.
    7. Lorena DelaTorre-Diaz & Roman Rodríguez-Aguilar & Salvador Rivas-Aceves, 2023. "The Importance of Health and Social Protection Assets in the Economic Welfare of Households in Mexico," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 18(4), pages 1-22, Octubre -.
    8. Jingyi Wang & Jing Guan & Guojun Wang, 2023. "Impact of long‐term care insurance on the health status of middle‐aged and older adults," Health Economics, John Wiley & Sons, Ltd., vol. 32(3), pages 558-573, March.

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    More about this item

    Keywords

    Asset index; Household income; Developing countries;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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