Poverty-Specific Purchasing Power Parities in Africa

The paper revisits the issue of poverty-specific purchasing power parities (PPPs), using the most recent (2011) International Comparison Program (ICP) results. The World Bank's global poverty count uses a common international poverty line -- c...

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Main Authors: Dikhanov, Yuri, Hamadeh, Nada, Vigil-Oliver, William, Degefu, Tefera B., Song, Inyoung
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/271051500404610210/Poverty-specific-purchasing-power-parities-in-Africa
http://hdl.handle.net/10986/27956
id okr-10986-27956
recordtype oai_dc
spelling okr-10986-279562021-06-08T14:42:48Z Poverty-Specific Purchasing Power Parities in Africa Dikhanov, Yuri Hamadeh, Nada Vigil-Oliver, William Degefu, Tefera B. Song, Inyoung PURCHASING POWER PARITIES PPPs PRICE INDICES POVERTY MEASUREMENT The paper revisits the issue of poverty-specific purchasing power parities (PPPs), using the most recent (2011) International Comparison Program (ICP) results. The World Bank's global poverty count uses a common international poverty line -- currently $1.90 at 2011 international prices—based on the ICP PPPs for consumption. The use of these PPPs is often criticized for two reasons. First, the ICP PPPs are based on patterns of aggregate household consumption, not the consumption of the poor. Second, the basket of goods and services used for collecting prices for the ICP is not poverty specific. On the first issue, using data from 28 African countries, the paper concludes that the poverty-specific PPPs estimated with household expenditure survey weights are very similar to the ICP PPPs. On the second issue, poverty-specific PPPs were estimated after removing items deemed to be irrelevant for the poor. The overall effect of removing these items from consumption PPPs is shown to be negligible. 2017-08-24T19:53:02Z 2017-08-24T19:53:02Z 2017-07 Working Paper http://documents.worldbank.org/curated/en/271051500404610210/Poverty-specific-purchasing-power-parities-in-Africa http://hdl.handle.net/10986/27956 English en_US Policy Research Working Paper;No. 8150 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic PURCHASING POWER PARITIES
PPPs
PRICE INDICES
POVERTY MEASUREMENT
spellingShingle PURCHASING POWER PARITIES
PPPs
PRICE INDICES
POVERTY MEASUREMENT
Dikhanov, Yuri
Hamadeh, Nada
Vigil-Oliver, William
Degefu, Tefera B.
Song, Inyoung
Poverty-Specific Purchasing Power Parities in Africa
geographic_facet Africa
relation Policy Research Working Paper;No. 8150
description The paper revisits the issue of poverty-specific purchasing power parities (PPPs), using the most recent (2011) International Comparison Program (ICP) results. The World Bank's global poverty count uses a common international poverty line -- currently $1.90 at 2011 international prices—based on the ICP PPPs for consumption. The use of these PPPs is often criticized for two reasons. First, the ICP PPPs are based on patterns of aggregate household consumption, not the consumption of the poor. Second, the basket of goods and services used for collecting prices for the ICP is not poverty specific. On the first issue, using data from 28 African countries, the paper concludes that the poverty-specific PPPs estimated with household expenditure survey weights are very similar to the ICP PPPs. On the second issue, poverty-specific PPPs were estimated after removing items deemed to be irrelevant for the poor. The overall effect of removing these items from consumption PPPs is shown to be negligible.
format Working Paper
author Dikhanov, Yuri
Hamadeh, Nada
Vigil-Oliver, William
Degefu, Tefera B.
Song, Inyoung
author_facet Dikhanov, Yuri
Hamadeh, Nada
Vigil-Oliver, William
Degefu, Tefera B.
Song, Inyoung
author_sort Dikhanov, Yuri
title Poverty-Specific Purchasing Power Parities in Africa
title_short Poverty-Specific Purchasing Power Parities in Africa
title_full Poverty-Specific Purchasing Power Parities in Africa
title_fullStr Poverty-Specific Purchasing Power Parities in Africa
title_full_unstemmed Poverty-Specific Purchasing Power Parities in Africa
title_sort poverty-specific purchasing power parities in africa
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/271051500404610210/Poverty-specific-purchasing-power-parities-in-Africa
http://hdl.handle.net/10986/27956
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