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Lanjouw, Peter Frederik
Poverty and Inequality Team, Development Economics Research Group, World Bank
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Fields of Specialization
Poverty and Inequality Analysis; Rural Development; Small Area Estimation; Village Studies
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Poverty and Inequality Team, Development Economics Research Group, World Bank
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January 31, 2023
Biography
Peter Lanjouw, a Dutch national, is Research Manager of the Poverty and Inequality Team in the Development Economics Research Group of the World Bank. He is also an Honorary Fellow of the Amsterdam Institute of International Development, Netherlands. He completed his Ph.D. in economics from the London School of Economics in 1992. From August 2003 until August 2005, he was a visiting scholar at the Agriculture and Resource Economics department at UC Berkeley, and he held the appointment of Professor of Economics at the VU University of Amsterdam between September 1998 and May 2000. He has taught in the Masters in Development Economics program at the University of Namur, Belgium and has also taught at the Foundation for the Advanced Study of International Development in Tokyo, Japan. His research focuses on various aspects of poverty and inequality measurement as well as on rural development issues.
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Publication
Poverty Alleviation through Geographic Targeting: How Much Does Disaggregation Help?
(World Bank, Washington, D.C., 2004-10) Elbers, Chris ; Fujii, Tomoki ; Lanjouw, Peter ; Özler, Berk ; Yin, WesleyUsing recently completed "poverty maps" for Cambodia, Ecuador, and Madagascar, the authors simulate the impact on poverty of transferring an exogenously given budget to geographically defined subgroups of the population according to their relative poverty status. They find large gains from targeting smaller administrative units, such as districts or villages. But these gains are still far from the poverty reduction that would be possible had the planners had access to information on household level income or consumption. The results suggest that a useful way forward might be to combine fine geographic targeting using a poverty map with within-community targeting mechanisms. -
Publication
Imputed Welfare Estimates in Regression Analysis
(World Bank, Washington, D.C., 2004-04) Elbers, Chris ; Lanjouw, Jean O. ; Lanjouw, PeterThe authors discuss the use of imputed data in regression analysis, in particular the use of highly disaggregated welfare indicators (from so-called "poverty maps"). They show that such indicators can be used both as explanatory variables on the right-hand side and as the phenomenon to explain on the left-hand side. The authors try out practical ways of adjusting standard errors of the regression coefficients to reflect the error introduced by using imputed, rather than actual, welfare indicators. These are illustrated by regression experiments based on data from Ecuador. For regressions with imputed variables on the left-hand side, the authors argue that essentially the same aggregate relationships would be found with either actual or imputed variables. They address the methodological question of how to interpret aggregate relationships found in such regressions. -
Publication
Poverty in India during the 1990s : A Regional Perspective
(World Bank, Washington, DC, 2003-10) Kijima, Yoko ; Lanjouw, PeterThe authors provide estimates of poverty at the regional level in India, spanning the 1990s. Such estimates have not been previously available due to concerns regarding non-comparability of the 1993-94 and 1999-2000 National Sample Survey Organization (NSSO) household survey data. They implement an adjustment procedure to restore comparability based on a methodology developed by Elbers and others (2003). The results indicate a less rapid decline of poverty, at the all-India level than has been suggested by Deaton and Dre (2002), based on a related adjustment methodology. The authors attempt to uncover the source of disagreement across these procedures, by probing a number of their underlying assumptions. -
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Poverty, Education, and Health in Indonesia : Who Benefits from Public Spending?
(World Bank, Washington, DC, 2001-12) Lanjouw, Peter ; Pradhan, Menno ; Saadah, Fadia ; Sayed, Haneen ; Sparrow, RobertThe authors investigate the extent to which Indonesia's poor benefit from public and private provisioning of education and health services. Drawing on multiple rounds of SUSENAS household surveys, they document a reversal in the rate of decline in poverty and a slowdown in social sector improvements resulting from the economic crisis in the second half of the 1990s. Carrying out traditional static benefit-incidence analysis of public spending in education and health, the authors find patterns consistent with experience in other countries: spending on primary education and primary health care tends to be pro-poor, while spending on higher education and hospitals is less obviously beneficial to the poor. These conclusions are tempered once one allows for economies of scale in consumption which weaken the link between poverty status and household size. The authors also examine the incidence of changes in government spending. They find that the marginal incidence of spending in both junior and senior secondary schooling is more progressive than what static analysis would suggest, consistent with "early capture" by the non-poor of education spending. In the health sector marginal and average incidence analysis point to the same conclusion: the greatest benefit to the poor would come from an increase in primary health care spending. -
Publication
Simulating the Impact of Geographic Targeting on Poverty Alleviation in Morocco : What Are the Gains from Disaggregation?
(World Bank, Washington, DC, 2008-09) Douidich, Mohammed ; Ezzrari, Abdeljouad ; Lanjouw, PeterThe authors employ the recently completed "poverty map" for Morocco, referring to the year 2004, as a tool for an ex-ante evaluation of the distributional incidence of geographic targeting of public resources. They simulate the impact on poverty of transferring an exogenously given budget to geographically defined sub-groups of the population according to their relative poverty status. In both rural and urban areas, the findings reveal large gains from targeting smaller administrative units, such as communes or districts. However, these gains are still far from the poverty reduction that would be possible had the planners had access to information on household level income or consumption. The results indicate that a useful way forward might be to combine fine geographic targeting using a poverty map with within-community targeting mechanisms. -
Publication
How Good a Map? Putting Small Area Estimation to the Test
(World Bank, Washington, DC, 2007-03) Demombynes, Gabriel ; Elbers, Chris ; Lanjouw, Jean O. ; Lanjouw, PeterThe authors examine the performance of small area welfare estimation. The method combines census and survey data to produce spatially disaggregated poverty and inequality estimates. To test the method, they compare predicted welfare indicators for a set of target populations with their true values. They construct target populations using actual data from a census of households in a set of rural Mexican communities. They examine estimates along three criteria: accuracy of confidence intervals, bias, and correlation with true values. The authors find that while point estimates are very stable, the precision of the estimates varies with alternative simulation methods. While the original approach of numerical gradient estimation yields standard errors that seem appropriate, some computationally less-intensive simulation procedures yield confidence intervals that are slightly too narrow. The precision of estimates is shown to diminish markedly if unobserved location effects at the village level are not well captured in underlying consumption models. With well specified models there is only slight evidence of bias, but the authors show that bias increases if underlying models fail to capture latent location effects. Correlations between estimated and true welfare at the local level are highest for mean expenditure and poverty measures and lower for inequality measures. -
Publication
Local Inequality and Project Choice: Theory and Evidence from Ecuador
(World Bank, Washington, DC, 2006-08) Araujo, M. Caridad ; Ferreira, Francisco H.G. ; Lanjouw, Peter ; Özler, BerkThis paper provides evidence consistent with elite capture of Social Fund investment projects in Ecuador. Exploiting a unique combination of data-sets on village-level income distributions, Social Fund project administration, and province level electoral results, the authors test a simple model of project choice when local political power is unequally distributed. In accordance with the predictions of the model, poorer villages are more likely to receive projects that provide excludable (private) goods to the poor, such as latrines. Controlling for poverty, more unequal communities are less likely to receive such projects. Consistent with the hypothesis of elite capture, these results are sensitive to the specific measure of inequality used in the empirical analysis, and are strongest for expenditure shares at the top of the distribution. -
Publication
Re-Interpreting Sub-Group Inequality Decompositions
(World Bank, Washington, DC, 2005-08) Elbers, Chris ; Lanjouw, Peter ; Mistiaen, Johan A. ; Özler, BerkThe authors propose a modification to the conventional approach of decomposing income inequality by population sub-groups. Specifically, they propose a measure that evaluates observed between-group inequality against a benchmark of maximum between-group inequality that can be attained when the number and relative sizes of groups under examination are fixed. The authors argue that such a modification can provide a complementary perspective on the question of whether a particular population breakdown is salient to an assessment of inequality in a country. As their measure normalizes between-group inequality by the number and relative sizes of groups, it is also less subject to problems of comparability across different settings. The authors show that for a large set of countries their assessment of the importance of group differences typically increases substantially on the basis of this approach. The ranking of countries (or different population groups) can also differ from that obtained using traditional decomposition methods. Finally, they observe an interesting pattern of higher levels of overall inequality in countries where their measure finds higher between-group contributions. -
Publication
Brazil's Bolsa Escola Program : The Role of Local Governance in Decentralized Implementation
(World Bank, Washington, DC, 2005-12) de Janvry, Alain ; Finan, Frederico ; Sadoulet, Elisabeth ; Nelson, Donald ; Lindert, Kathy ; de la Briere, Benedicte ; Lanjouw, PeterThis study analyzes the role of local governance in the implementation of Bolsa Escola, a decentralized conditional cash transfer program for child education in Brazil. It is based on a survey of 260 municipalities in four states of the Northeast. The analysis focuses on program implementation. Results show that there was considerable confusion over the municipality s role in beneficiary selection and consequently much heterogeneity in implementation across municipalities. Social control councils as direct accountability mechanisms were often not in place and poorly informed, weakening their role. However, electoral support for incumbent mayors rewarded larger program coverage, presence of councils, and low leakages of benefits to the non-poor. -
Publication
Micro-Level Estimation of Welfare
(World Bank, Washington, DC, 2002-10) Elbers, Chris ; Lanjouw, Jean O. ; Lanjouw, PeterThe authors construct and derive the properties of estimators of welfare that take advantage of the detailed information about living standards available in small household surveys and the comprehensive coverage of a census or large sample. By combining the strengths of each, the estimators can be used at a remarkably disaggregated level. They have a clear interpretation, are mutually comparable, and can be assessed for reliability using standard statistical theory. Using data from Ecuador, the authors obtain estimates of welfare measures, some of which are quite reliable for populations as small as 15,000 households--a "town." They provide simple illustrations of their use. Such estimates open up the possibility of testing, at a more convincing intra-country level, the many recent models relating welfare distributions to growth and a variety of socioeconomic and political outcomes.