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Equivalence Scale and Poverty Assessment in a Poor Country

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  • Arsenio M. Balisacan

    (School of Economics, University of the Philippines Diliman)

Abstract

The paper uses household expenditure pattern to estimate equivalence scales for the cost of children in Philippine rural and urban areas. It then employs these estimates in determining aggregate poverty. The paper shows that the practice of assessing aggregate poverty based on total household expenditure (or income) tends to substantially overstate aggregate poverty. In the absence of applicable equivalence scales, much improvement in aggregate poverty assessment in poor countries can be obtained if some attempts are made to fully adjust even only for household size.

Suggested Citation

  • Arsenio M. Balisacan, 1992. "Equivalence Scale and Poverty Assessment in a Poor Country," UP School of Economics Discussion Papers 199204, University of the Philippines School of Economics.
    • Handle: RePEc:phs:dpaper:199204
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    Cited by:

    1. John Paolo Rosales Rivera, 2022. "A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 242-267, September.

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