IDEAS home Printed from https://ideas.repec.org/a/uii/journl/v1y2009i3p161-175.html
   My bibliography  Save this article

An examination of methods to estimate poverty line in Indonesia

Author

Listed:
  • Muhammad Nashihin

    (STIE Keuangan dan Perbankan Indonesia (STEKPI), Jakarta)

Abstract

The first objective of this paper is to set out a new approach for estimating regional poverty lines in Indonesia. The approach is referred as a utility-consistent poverty line (UCPL) approach. It is based on a theory of price index or cost of living index (COLI). The second objective is to examine the development of methods for estimating poverty lines in general and methods used to estimate regional poverty lines in Indonesia. The survey focuses on comparing these methods with UCPL approach. The paper finds out that the existing methods used to estimate poverty line in Indonesia are not able to generate utility-consistent poverty lines.

Suggested Citation

  • Muhammad Nashihin, 2009. "An examination of methods to estimate poverty line in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 1(3), pages 161-175, April.
    • Handle: RePEc:uii:journl:v:1:y:2009:i:3:p:161-175
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEP/article/download/2286/2085
    Download Restriction: no
    File URL: https://journal.uii.ac.id/JEP/article/view/2286/2085
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:agg:journl:1288 is not listed on IDEAS
    2. Brent R. Moulton, 1996. "Bias in the Consumer Price Index: What Is the Evidence?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 159-177, Fall.
    3. Unknown, 1967. "Index," 1967 Conference, August 21-30, 1967, Sydney, New South Wales, Australia 209796, International Association of Agricultural Economists.
    4. Ravallion, Martin & van de Walle, Dominique, 1991. "Urban-rural cost-of-living differentials in a developing economy," Journal of Urban Economics, Elsevier, vol. 29(1), pages 113-127, January.
    5. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," The World Bank Economic Review, World Bank, vol. 8(1), pages 75-102, January.
    6. Paul, Satya, 1989. "A model of constructing the poverty line," Journal of Development Economics, Elsevier, vol. 30(1), pages 129-144, January.
    7. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, "undated". "Measurements of Poverty in Indonesia: 1996, 1999, and Beyond," Working Papers 422, Publications Department.
    8. repec:bla:revinw:v:47:y:2001:i:4:p:473-87 is not listed on IDEAS
    9. Harold W. Watts, 1967. "The ISO-Prop Index: An Approach to the Determination of Differential Poverty Income Thresholds," Journal of Human Resources, University of Wisconsin Press, vol. 2(1), pages 3-18.
    10. Aldi Hagenaars & Klaas de Vos, 1988. "The Definition and Measurement of Poverty," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 211-221.
    11. Greer, Joel & Thorbecke, Erik, 1986. "A methodology for measuring food poverty applied to Kenya," Journal of Development Economics, Elsevier, vol. 24(1), pages 59-74, November.
    12. Tarp, Finn & Simler, Kenneth & Matusse, Cristina & Heltberg, Rasmus & Dava, Gabriel, 2002. "The Robustness of Poverty Profiles Reconsidered," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 77-108, October.
    13. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2001. "Eating like which “Joneses?” an Iterative Solution to the Choice of a Poverty Line “Reference Group”," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 473-487, December.
    14. repec:agg:journl:1275 is not listed on IDEAS
    15. Michael J. Boskin, 1998. "Consumer Prices, the Consumer Price Index, and the Cost of Living," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 3-26, Winter.
    16. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, September.
    17. Abuzar Asra, 1999. "Urban-Rural Differences in Costs of Living and Their Impact on Poverty Measures," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(3), pages 51-69.
    18. Quentin Wodon, 1997. "Food energy intake and cost of basic needs: Measuring poverty in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 34(2), pages 66-101.
    19. Kakwani, Nanak & Hill, Robert J., 2002. "Economic theory of spatial cost of living indices with application to Thailand," Journal of Public Economics, Elsevier, vol. 86(1), pages 71-97, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Anaïs Falk & Catherine Macombe & Denis Loeillet & Jean-Marc Deboin, 2022. "How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries," Sustainability, MDPI, vol. 14(17), pages 1-21, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ravallion, Martin & Lokshin, Michael, 2003. "On the utility consistency of poverty lines," Policy Research Working Paper Series 3157, The World Bank.
    2. Daniel Suryadarma & Rima Prama Artha & Asep Suryahadi & Sudarno Sumarto, . "A Reassessment of Inequality and Its Role in Poverty Reduction in Indonesia," Journal Article, Publications Department.
    3. Besma Belhadj & Firas Kaabi, 2020. "New membership function for poverty measure," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 676-688, November.
    4. Emily Schmidt & Rachel Gilbert & Brian Holtemeyer & Kristi Mahrt, 2021. "Poverty analysis in the lowlands of Papua New Guinea underscores climate vulnerability and need for income flexibility," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(1), pages 171-191, January.
    5. Andy Sumner & Peter Edward, 2013. "From Low Income, High Poverty to High-Income, No Poverty? An Optimistic View of the Long-Run Evolution of Poverty in Indonesia By International Poverty Lines, 1984–2030," Working Papers in Economics and Development Studies (WoPEDS) 201310, Department of Economics, Padjadjaran University, revised Jun 2013.
    6. Anaïs Falk & Catherine Macombe & Denis Loeillet & Jean-Marc Deboin, 2022. "How Can a Company Assess Social Needs to Reduce Poverty among Its Workers? The Case of the Export Banana Industries," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    7. Christophe Muller, 2008. "The Measurement Of Poverty With Geographical And Intertemporal Price Dispersion: Evidence From Rwanda," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 27-49, March.
    8. Jed Friedman, 2003. "How Responsive is Poverty to Growth? A Regional Analysis of Poverty, Inequality, and Growth in Indonesia, 1984-99," WIDER Working Paper Series DP2003-57, World Institute for Development Economic Research (UNU-WIDER).
    9. Asma Zedini & Besma Belhadj, 2015. "A New Approach to Unidimensional Poverty Analysis: Application to the Tunisian Case," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 465-476, September.
    10. repec:agg:journl:3608 is not listed on IDEAS
    11. Ravallion, Martin & Sen, Binayak, 1994. "When method matters : toward a resolution of the debate about Bangladesh's poverty measures," Policy Research Working Paper Series 1359, The World Bank.
    12. Paul Dorosh & Carlo del Ninno & David E. Sahn, 1995. "Poverty alleviation in Mozambique: a multi‐market analysis of the role of food aid," Agricultural Economics, International Association of Agricultural Economists, vol. 13(2), pages 89-99, November.
    13. Besma Belhadj & Mohamed Salah Matoussi, 2010. "Poverty in Tunisia: A Fuzzy Measurement Approach," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 146(II), pages 431-450, June.
    14. World Bank, 2004. "Jordan - Poverty Assessment (Vol. 2 of 2) : Main Report," World Bank Publications - Reports 14890, The World Bank Group.
    15. World Bank, 2008. "Mozambique - Beating the Odds : Sustaining Inclusion in a Growing Economy - A Mozambique Poverty, Gender, and Social Assessment, Volume 1. Main Report," World Bank Publications - Reports 7981, The World Bank Group.
    16. Sandip Sarkar & Manoranjan Pal, 2018. "On the Estimation of Lower and Upper Bounds of Poverty Line: An Illustration with Indian Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 901-924, August.
    17. Jan Priebe, 2014. "Official Poverty Measurement in Indonesia since 1984: A Methodological Review," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 185-205, August.
    18. Besma Belhadj, 2011. "A new fuzzy unidimensional poverty index from an information theory perspective," Empirical Economics, Springer, vol. 40(3), pages 687-704, May.
    19. Kenneth R. Simler & Channing Arndt, 2007. "Poverty Comparisons With Absolute Poverty Lines Estimated From Survey Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(2), pages 275-294, June.
    20. repec:agg:journl:3579 is not listed on IDEAS
    21. Ravallion, Martin & Lokshin, Michael, 2005. "Lasting local impacts of an economywide crisis," Policy Research Working Paper Series 3503, The World Bank.
    22. Channing Arndt & Kristi Mahrt & Finn Tarp, 2016. "Absolute poverty lines," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Poverty line; spatial cost of living; food energy intake; ravallion method;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:journl:v:1:y:2009:i:3:p:161-175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.