Scandinavian Working Papers in Economics

Discussion Papers of Business and Economics,
University of Southern Denmark, Department of Business and Economics

No 15/2015: Poverty mapping based on first order dominance with an example from Mozambique

Channing Arndt , M. Azhar Hussain , Vincenzo Salvucci , Finn Tarp and Lars Peter Østerdal ()
Additional contact information
Channing Arndt: UNU-WIDER, Postal: Helsinki, Finland
M. Azhar Hussain: Department of Society and Globalisation, Postal: Roskilde University, Denmark
Vincenzo Salvucci: University of Copenhagen, Postal: Denmark
Finn Tarp: UNU-WIDER, Postal: Helsinki, Finland, and University of Copenhagen, Denmark
Lars Peter Østerdal: Department of Business and Economics, Postal: University of Southern Denmark, Campusvej 55, DK-5230 Odense M, Denmark

Abstract: We explore a novel first order dominance (FOD) approach to poverty mapping and compare its properties to small area estimation. The FOD approach uses census data directly; is straightforward to implement; is multidimensional allowing for a broad conception of welfare; and accounts rigorously for welfare distributions in both levels and trends. An application to Mozambique highlights the value of the approach, including its advantages in the monitoring and evaluation of public expenditures. We conclude that the FOD approach to poverty mapping constitutes a useful addition to the toolkit of policy analysts.

Keywords: First order dominance; poverty mapping; small area estimation; multidimensional poverty measurement; public expenditure evaluation; Mozambique

JEL-codes: C15; C81; I32

37 pages, November 16, 2015

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