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Obasi O. Ukoha
Department of Agricultural Economics, Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria
Economics, Econometrics & Finance

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Robustness of the Poverty Measures: Evidence from Farm Households in Akwa Ibom State, Nigeria Nsikak-Abasi A. Etim; Obasi O. Ukoha
Journal of Social Commerce Vol. 1 No. 1 (2021): Journal of Social Commerce
Publisher : Celebes Scholar pg

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (315.941 KB) | DOI: 10.56209/jommerce.v1i1.3

Abstract

The use of a plethora of poverty indexes is sometimes fraught with difficulties. The purpose of this research was to quantitatively assess poverty and to examine the robustness of the poverty metrics. Selecting representative farm homes required a multistage sample technique, which was implemented. A total of 150 rural homes were surveyed using questionnaires. Stochastic dominance and the weighted poverty measures of Foster, Greer and Thorbecke were used in this work to examine the weighted poverty measures' resilience and sensitivity to changes in the poverty line. According to the findings, as people become older and their families get larger, the likelihood, severity, and depth of poverty increases. An asymptotic sampling distribution was utilized to infer whether poverty was larger across a variety of hypothetical poverty lines by stochastic dominance analysis. First-order stochastic dominance was found, with the Cumulative Distribution Function (CDF) of households headed by people over 60 years old lying totally above the other distribution functions (CDFs). The CDF of single families was lower than the CDF of married households, according to the findings. At any poverty level, the CDF of families with more than 10 household members stochastically dominated those with fewer family members. Many households will be lifted out of poverty if poverty-reduction initiatives are targeted at those over 60 and those with big families.
Co-Authors Nsikak-Abasi A. Etim