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Can subjective questions on economic welfare be trusted ? evidence for three developing countries

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  • Ravallion, Martin
  • Himelein, Kristen
  • Beegle, Kathleen

Abstract

While self-assessments of welfare have become popular for measuring poverty and estimating welfare effects, the methods can be deceptive given systematic heterogeneity in respondents'scales. Little is known about this problem. This study uses specially-designed surveys in three countries, Tajikistan, Guatemala, and Tanzania, to study scale heterogeneity. Respondents were asked to score stylized vignettes, as well as their own household. Diverse scales are in evidence, casting considerable doubt on the meaning of widely-used summary measures such as subjective poverty rates. Nonetheless, under the identifying assumptions of the study, only small biases are induced in the coefficients on widely-used regressors for subjective poverty and welfare.

Suggested Citation

  • Ravallion, Martin & Himelein, Kristen & Beegle, Kathleen, 2013. "Can subjective questions on economic welfare be trusted ? evidence for three developing countries," Policy Research Working Paper Series 6726, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6726
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    References listed on IDEAS

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    2. Fernando García-Quero & Jorge Guardiola, 2018. "Economic Poverty and Happiness in Rural Ecuador: the Importance of Buen Vivir (Living Well)," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(4), pages 909-926, December.
    3. Lars Osberg, 2015. "The Hunger of Old Women in Rural Tanzania: Can Subjective Data Improve Poverty Measurement?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 723-738, December.
    4. Hirfrfot, Kibrom & Barrett, Christopher B. & Lentz, Erin C. & Taddesse, Birhanu, 2014. "The Subjective Well-being Effects of Imperfect Insurance that Doesn’t Pay Out," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173478, Agricultural and Applied Economics Association.

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    Keywords

    Rural Poverty Reduction; Economic Theory&Research; Biodiversity; Poverty Lines; Regional Economic Development;
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