Equivalence scales for measuring poverty in transitional Russia: Engel's food share method and the subjective economic well-being method

Research output: Contribution to journalArticle

Abstract

This study estimates the equivalence scales for measuring poverty in transitional Russia using the Russia Longitudinal Monitoring Survey data of 1994 and 2002, i.e. before and after the 1998 economic crisis. To examine the robustness and plausibility of the two estimates, we compared the estimate results in both the periods. For constructing the equivalence scales, the costs of children and additional adults are estimated. Further, in order to investigate the most plausible equivalence scales for measuring poverty, the following two methods are employed for the estimations: Engel's food share method (Engel method) and the subjective economic well-being method (SW method). The estimation results show that the equivalence scales for a child, obtained from the Engel and SW methods, could be similar; however, the results for an additional adult are very different. It reveals that poverty evaluation is highly underestimated when the SW method is used. In conclusion, although the Engel method has a theoretical flaw, it might be more plausible than the SW method in the context of poverty evaluation for transitional Russia.

Original languageEnglish
Pages (from-to)351-355
Number of pages5
JournalApplied Economics Letters
Volume17
Issue number4
DOIs
Publication statusPublished - Mar 1 2010
Externally publishedYes

Fingerprint

Russia
Poverty measures
Economic well-being
Equivalence scales
Food
Evaluation
Poverty
Survey data
Costs
Robustness
Monitoring
Economic crisis

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

@article{9d5d1cdb59924a6381f639fbb0f48aa8,
title = "Equivalence scales for measuring poverty in transitional Russia: Engel's food share method and the subjective economic well-being method",
abstract = "This study estimates the equivalence scales for measuring poverty in transitional Russia using the Russia Longitudinal Monitoring Survey data of 1994 and 2002, i.e. before and after the 1998 economic crisis. To examine the robustness and plausibility of the two estimates, we compared the estimate results in both the periods. For constructing the equivalence scales, the costs of children and additional adults are estimated. Further, in order to investigate the most plausible equivalence scales for measuring poverty, the following two methods are employed for the estimations: Engel's food share method (Engel method) and the subjective economic well-being method (SW method). The estimation results show that the equivalence scales for a child, obtained from the Engel and SW methods, could be similar; however, the results for an additional adult are very different. It reveals that poverty evaluation is highly underestimated when the SW method is used. In conclusion, although the Engel method has a theoretical flaw, it might be more plausible than the SW method in the context of poverty evaluation for transitional Russia.",
author = "Yuka Takeda",
year = "2010",
month = "3",
day = "1",
doi = "10.1080/13504850701748925",
language = "English",
volume = "17",
pages = "351--355",
journal = "Applied Economics Letters",
issn = "1350-4851",
publisher = "Routledge",
number = "4",

}

TY - JOUR

T1 - Equivalence scales for measuring poverty in transitional Russia

T2 - Engel's food share method and the subjective economic well-being method

AU - Takeda, Yuka

PY - 2010/3/1

Y1 - 2010/3/1

N2 - This study estimates the equivalence scales for measuring poverty in transitional Russia using the Russia Longitudinal Monitoring Survey data of 1994 and 2002, i.e. before and after the 1998 economic crisis. To examine the robustness and plausibility of the two estimates, we compared the estimate results in both the periods. For constructing the equivalence scales, the costs of children and additional adults are estimated. Further, in order to investigate the most plausible equivalence scales for measuring poverty, the following two methods are employed for the estimations: Engel's food share method (Engel method) and the subjective economic well-being method (SW method). The estimation results show that the equivalence scales for a child, obtained from the Engel and SW methods, could be similar; however, the results for an additional adult are very different. It reveals that poverty evaluation is highly underestimated when the SW method is used. In conclusion, although the Engel method has a theoretical flaw, it might be more plausible than the SW method in the context of poverty evaluation for transitional Russia.

AB - This study estimates the equivalence scales for measuring poverty in transitional Russia using the Russia Longitudinal Monitoring Survey data of 1994 and 2002, i.e. before and after the 1998 economic crisis. To examine the robustness and plausibility of the two estimates, we compared the estimate results in both the periods. For constructing the equivalence scales, the costs of children and additional adults are estimated. Further, in order to investigate the most plausible equivalence scales for measuring poverty, the following two methods are employed for the estimations: Engel's food share method (Engel method) and the subjective economic well-being method (SW method). The estimation results show that the equivalence scales for a child, obtained from the Engel and SW methods, could be similar; however, the results for an additional adult are very different. It reveals that poverty evaluation is highly underestimated when the SW method is used. In conclusion, although the Engel method has a theoretical flaw, it might be more plausible than the SW method in the context of poverty evaluation for transitional Russia.

UR - http://www.scopus.com/inward/record.url?scp=76749148023&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=76749148023&partnerID=8YFLogxK

U2 - 10.1080/13504850701748925

DO - 10.1080/13504850701748925

M3 - Article

AN - SCOPUS:76749148023

VL - 17

SP - 351

EP - 355

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1350-4851

IS - 4

ER -