Does Asset Index Measure Economic Status Of Households Better In Developing Countries? Evidence from Urban Ethiopia

Course ID
Publisher
Ethiopian Economics Association (EEA)
Author
Yonas Alem

Abstract:

Existing evidences show that the standard money metric measures of household welfare are subject to different measurement errors and hence they may not reflect the economic status of households in developing countries in a realistic way. An asset index is one alternative in such situations. Using the latest round of the Ethiopian Urban Household Survey, we construct an asset index for urban dwellers in Ethiopia and we prove that the index constructed using the statistical method of Principal Component Analysis is reliable, robust and better in expressing urban households’ economic status in Ethiopia than consumption. In addition, using a probit model, the study shows that the determinants of urban poverty differ between asset index and consumption measures as a basis to classify households as poor or non-poor

Corporate Author:Getnet Alemu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher:Ethiopian Economic Association (EEA)
ISBN/ISSN:978-99944-54-10-5
Primary Descriptors:Asset index

Secondary Descriptor:Principal Components

Cataloge Date:02/27/2013
Broad Subject heading:Urban Poverty
Call Number:330.963 PRO 2009
Serial Key Title:Proceedings of the Sixth International Conference on the Ethiopian Economy
Publication catagory:International Conference
Content type:EEA Publication
Volume:I
Publication date:2013-05-27 00:00:00
Forum or Discussion date:2013-02-27 00:00:00
PDF file: Yonas and Fabian_DOES ASSET INDEX MEASURE ECONOMIC STATUS OF HOUSEHOLDS BETTER.pdf
Place of publication:Addis Ababa, Ethiopia
Type of material:Book
Current frequency:Annualy
Author: Yonas Alem and Fabian Nilsson

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