Working Paper

Are We Confusing Poverty with Preferences?

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
van den Boom, Bart
dc.contributor.author
Halsema, Alex
dc.contributor.author
Molini, Vasco
dc.date.accessioned
2015-05-07T21:23:27Z
dc.date.available
2015-05-07T21:23:27Z
dc.date.issued
2015-04
dc.date.lastModified
2017-12-14T04:34:27Z
dc.description.abstract
Modifying the national poverty line to the context of observed consumption patterns of the poor is becoming popular. A context-specific poverty line would be more consistent with preferences. This paper provides theoretical and empirical evidence that the contrary holds and that the national poverty line is more appropriate for comparing living standards among the poor, at least under prevailing conditions in Mozambique and Ghana. The problem lies in the risk of downscaling the burden associated with cheap-calorie diets and the low nonfood component of the rural poor. The paper illustrates how observed behavior may neither reveal preferences nor detect heterogeneous preferences among the poor. Rather, the consumption pattern is the upshot of the poverty condition itself. Poverty is confused with preferences if observed cheap-calorie diets are seen as a matter of taste, whereas in fact they reflect a lack of means to consume a preferred diet of higher quality, as food Engel curve estimates indicate. Likewise, a smaller nonfood component is not a matter of a particular distaste, but an adaptation to the fact that various nonfood items (such as transport) and basic services (such as electricity and health) are simply absent in rural areas.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/04/24415505/confusing-poverty-preferences
dc.identifier.uri
http://hdl.handle.net/10986/21862
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7247
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
SANITATION
dc.subject
POVERTY THRESHOLD
dc.subject
EXPENSIVE ITEMS
dc.subject
LIVING STANDARDS
dc.subject
UTILITY CONSISTENCY
dc.subject
RURAL POVERTY THRESHOLD
dc.subject
HOUSEHOLD SIZE
dc.subject
POVERTY LINE
dc.subject
EXPENSIVE FOOD
dc.subject
EXPENSIVE CALORIES
dc.subject
RURAL LINE
dc.subject
RELATIVE PRICE
dc.subject
FOOD CONSUMPTION
dc.subject
BALANCED DIET
dc.subject
INCOME
dc.subject
SCHOOLING
dc.subject
NATIONAL POVERTY LINE
dc.subject
ADMINISTRATIVE REGIONS
dc.subject
NON-FOOD COMPONENT
dc.subject
ECONOMIC REVIEW
dc.subject
DEVELOPING COUNTRIES
dc.subject
NONFOOD ITEMS
dc.subject
FOOD QUALITY
dc.subject
CASSAVA
dc.subject
HOUSING
dc.subject
POLITICAL ECONOMY
dc.subject
WELFARE FUNCTION
dc.subject
POORER REGIONS
dc.subject
REGIONAL DIVERSITY
dc.subject
NATIONAL POVERTY
dc.subject
TOMATOES
dc.subject
POOR PEOPLE
dc.subject
CORRELATION COEFFICIENT
dc.subject
INTERNATIONAL POVERTY LINES
dc.subject
PRICE VECTOR
dc.subject
FOOD CONSUMPTION PER CAPITA
dc.subject
RURAL POOR
dc.subject
SCALAR ADJUSTMENT
dc.subject
NON-FOOD PRICES
dc.subject
REGION
dc.subject
POVERTY REDUCTION
dc.subject
RURAL FOOD
dc.subject
MAIZE
dc.subject
UTILITY-CONSISTENT POVERTY LINE
dc.subject
CEREALS
dc.subject
RURAL HOUSEHOLD
dc.subject
FOOD BASKET
dc.subject
MEASURING POVERTY
dc.subject
RURAL HOUSEHOLDS
dc.subject
DEVELOPMENT ECONOMICS
dc.subject
FOOD POVERTY LINE
dc.subject
HOUSEHOLD HEAD
dc.subject
POOR HOUSEHOLD
dc.subject
FOOD PRICE
dc.subject
INTERNATIONAL POVERTY COMPARISONS
dc.subject
ACCESS TO SAFE DRINKING WATER
dc.subject
POVERTY INCIDENCE
dc.subject
FOOD POVERTY LINES
dc.subject
FOOD REQUIREMENTS
dc.subject
WELFARE LEVEL
dc.subject
POVERTY STATUS
dc.subject
VEGETABLES
dc.subject
CASH INCOME
dc.subject
HOUSEHOLD SURVEYS
dc.subject
POVERTY RANKINGS
dc.subject
CONSISTENT POVERTY
dc.subject
RELATIVE PRICES
dc.subject
WELFARE INDICATORS
dc.subject
URBAN POVERTY LINE
dc.subject
POVERTY PROFILES
dc.subject
HOUSEHOLD MEMBERS
dc.subject
FOOD BUNDLES
dc.subject
FOOD PRODUCTS
dc.subject
NONFOOD COMPONENT
dc.subject
POVERTY PROFILE
dc.subject
BASIC FOODS
dc.subject
HOUSEHOLD HEADS
dc.subject
INDIFFERENCE CURVE
dc.subject
UTILITY-CONSISTENT POVERTY
dc.subject
FOOD ITEMS
dc.subject
RURAL GAP
dc.subject
RURAL POVERTY LINE
dc.subject
POVERTY LINES
dc.subject
STAPLE FOODS
dc.subject
CONSUMPTION
dc.subject
BEEF
dc.subject
HUMAN ENERGY
dc.subject
POVERTY COMPARISONS
dc.subject
CASE STUDY
dc.subject
SPECIFIC POVERTY LINE
dc.subject
FOOD POVERTY
dc.subject
POVERTY MEASUREMENT
dc.subject
BASIC NEEDS
dc.subject
LIVING STANDARDS SURVEY
dc.subject
FOOD COMPONENT
dc.subject
RURAL AREA
dc.subject
EQUIVALENCE SCALES
dc.subject
POLICY MAKERS
dc.subject
PARTICULAR POVERTY LINE
dc.subject
DEVELOPMENT ISSUES
dc.subject
UTILITY FUNCTION
dc.subject
RURAL POVERTY
dc.subject
URBAN AREAS
dc.subject
HOUSEHOLD
dc.subject
FOOD EXPENDITURE
dc.subject
MALNUTRITION
dc.subject
RURAL
dc.subject
NUTRITION
dc.subject
FOOD
dc.subject
UTILITY LEVEL
dc.subject
FOOD DEMAND
dc.subject
SOCIAL WELFARE
dc.subject
EXPENDITURE LEVEL
dc.subject
PROTEINS
dc.subject
GEOGRAPHIC AREAS
dc.subject
TARGETING
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
DEMAND FOR FOOD
dc.subject
RURAL DIMENSION
dc.subject
CONSISTENT POVERTY LINES
dc.subject
FOOD SHARE
dc.subject
REGIONS
dc.subject
DRINKING WATER
dc.subject
EXTREME POVERTY
dc.subject
CONSUMPTION PATTERNS
dc.subject
RURAL AREAS
dc.subject
POVERTY
dc.subject
MEAT
dc.subject
FOOD BUNDLE
dc.subject
HOUSEHOLD CONSUMPTION
dc.subject
FOOD AVAILABILITY
dc.subject
RICE
dc.subject
HOUSEHOLD NEEDS
dc.subject
HOUSEHOLD EXPENDITURES
dc.subject
HOUSEHOLD WELFARE
dc.subject
NON-FOOD EXPENDITURE
dc.subject
OVERALL POVERTY LINE
dc.subject
POLICY RESEARCH
dc.subject
STARVATION
dc.subject
POVERTY RATE
dc.subject
REDUCTION OF POVERTY
dc.subject
POOR
dc.subject
POVERTY ASSESSMENT
dc.subject
CONSUMPTION PER CAPITA
dc.subject
FOOD PRICES
dc.subject
POVERTY BASKETS
dc.subject
OFFICIAL POVERTY
dc.subject
POLICY ANALYSIS
dc.subject
POVERTY ASSESSMENTS
dc.subject
FOODS
dc.subject
FOOD ITEM
dc.subject
YAM
dc.subject
RURAL HEADCOUNT
dc.subject
POOR HOUSEHOLDS
dc.title
Are We Confusing Poverty with Preferences?
en
dc.type
Working Paper
en
okr.date.disclosure
2015-04-23
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/04/24415505/confusing-poverty-preferences
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7247
okr.identifier.externaldocumentum
090224b082dfe5de_1_0
okr.identifier.internaldocumentum
24415505
okr.identifier.report
WPS7247
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/04/23/090224b082dfe5de_1_0/Rendered/PDF/Are0we0confusi0y0with0preferences00.pdf
en
okr.region.administrative
Africa
okr.region.country
Ghana
okr.region.country
Mozambique
okr.topic
Poverty Reduction :: Rural Poverty Reduction
okr.topic
Food Beverage Industry
okr.topic
Macroeconomics and Economic Growth :: Regional Economic Development
okr.topic
Poverty Reduction :: Poverty Lines
okr.unit
Poverty Global Practice Group

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