||Determining Changes in Welfare Distributions at the Micro-Level: Updating Poverty Maps
|Chris Elbers, Jean O. Lanjouw, and Peter Lanjouw
Income and wealth distributions have a prominent position in growth and development theories, and as determinants of specific socio-economic outcomes. However, empirical investigation of these relationships has been contrained by the lack of detailed high quality information on those distributions at the micro-level. We have developed a unit record-level statistical approach to the estimation of welfare measures that takes advantage of both the detail in household sample surveys and the comprehensive coverage of a large survey or census ("poverty mapping". See Elbers, Lanjouw and Lanjouw 2003 for details.) We discuss here extensions to the approach to allow construction of welfare estimates for given year (t1) when either the household survey or census is not available in that year, but is at some time removed (t0). Often the interest in doing this will be to update an existing map constructed using both survey and census information in t0. Updated maps could be used by policy makers needing distributional information for monitoring programs and the incidence of development policy; and by researchers trying to understand how changes over time in policy or other factors affect distributional outcomes.