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Do Adult Equivalence Scales Matter in Poverty Estimates? A Northern Ghana Case Study and Simulation
Author(s) -
Regier Greg,
Zereyesus Yacob A.,
Dalton Timothy J.,
AmanorBoadu Vincent
Publication year - 2019
Publication title -
journal of international development
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.533
H-Index - 66
eISSN - 1099-1328
pISSN - 0954-1748
DOI - 10.1002/jid.3394
Subject(s) - equivalence (formal languages) , poverty , per capita , economics , dominance (genetics) , econometrics , inequality , demographic economics , mathematics , geography , socioeconomics , economic growth , demography , sociology , discrete mathematics , mathematical analysis , population , biochemistry , chemistry , gene
We test the sensitivity of per capita expenditures to several methods of per adult equivalent expenditures to control for economies of scale and household composition. Simulation analysis determines the indifference point between per capita expenditures and per adult equivalent measures in order to identify the factors contributing to the dominance of one measure over another. Results indicate that overall poverty and inequality measures in northern Ghana are highly sensitive to the use of equivalence scales. Poverty measures for children and the elderly and in urban and rural areas are also sensitive to equivalence scales. © 2018 John Wiley & Sons, Ltd.