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Citation Information

Type Working Paper - Paper prepared for the UNU-WIDER Growth and Poverty Project, 2012-2013
Title Utility-consistent poverty in Madagascar, 2001-2010: Snapshots in the presence of multiple economy-wide shocks
Author(s)
Publication (Day/Month/Year) 2012
URL http://www1.wider.unu.edu/inclusivegrowth/sites/default/files/IGA/Stifel.pdf
Abstract
We use Arndt and Simler’s (2010) utility-consistent approach to calculating poverty lines to analyze poverty in Madagascar 2001, 2005 and 2010. The Madagascar case is complicated by the fact that two major political crises along with a rice price crisis occurred between the survey periods. As such, the snapshots of national poverty rising from 56.3 percent in 2001, to 59.6 percent in 2005, and to 61.4 percent in 2010, are not necessarily indicative of a trend of persistently rising poverty. Indeed, complementary data from the national accounts, non-nationally representative surveys, and non-monetary measures of well-being indicate that in the time periods between the shocks, the well-being of the poorer segments of society improved. This evidence suggests that poverty estimates for Madagascar are more of a reflection of short-term shocks than of long term trends.

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