A Simple Poverty Scorecard for the Philippines

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Because local pro-poor organizations may want to use different or variouspoverty lines, this paper calibrates scores from its single scorecard to poverty likelihoodsfor eight lines:• National• Food• USAID “extreme”• USD1.25/day 2005 PPP• USD2.50/day 2005 PPP• USD3.75/day 2005 PPP• USD5.00/day 2005 PPP• USD4.32/day 1993 PPP 7The USAID “extreme” line is defined as the median income of people (nothouseholds) below the national line (U.S. Congress, 2002).The USD1.25/day line (2005 PPP) is derived from:• 2005 PPP exchange rate for “individual consumption expenditure by households”: 8PHP24.18 per USD1.00• National Consumer Price Index (CPI) for July 2002 (110.2) and July 2004 (121.8) 9• Average national CPI in 2005: 129.87The USD4.32/day 1993 PPP line is presented to provide backward compatibility withan earlier paper in which this was the main international line.8http://siteresources.worldbank.org/ICPINT/Resources/icp-final-tables.pdf,accessed February 6, 2009.9http://www.census.gov.ph/data/sectordata/tscpimon.htm, accessed January 27,2009.5
Given this, the USD1.25/day 2005 PPP line for the Philippines as a whole forthe 2004 APIS is: 10⎛ CPI( 2005 PPP exchange rate)⋅ USD1.25 ⋅ ⎜⎝ CPI⎛ PHP24.18 ⎞121.8USD1 25⎛ ⎞⎜ ⎟ ⋅ . ⋅ ⎜ ⎟ = PHP28.36.⎝ USD1.00 ⎠⎝129.8 ⎠July 20042005 averageThe USD2.50/day, USD3.75/day, and USD5.00/day 2005 PPP lines aremultiples of the USD1.25/day line. The $4.32/day 1993 PPP line uses a PPP exchangerate of PHP6.241 per USD1.00 (Sillers, 2006) and an average 1993 CPI of 63.306. This1993 PPP line provides backward compatibility with an earlier Philippine scorecard.The lines just discussed apply to the Philippines as a whole. For each APISround, they are adjusted for provincial and urban/rural differences in prices using:• L, a given all-Philippines poverty line• p i, population proportion by urban/rural in each province (I = number of areas)• π i, the national poverty line by area (used as a price deflator)⎞⎟ =⎠The cost-of-living-adjusted poverty line L ifor area i is then:Li=L ⋅ πI∑j =1pji⋅πj.The all-Philippines line L is the person-weighted average of local lines L i. Thedifferences in local lines reflect the differences in local prices.10Sillers (2006) provides this formula.6
Page 1 and 2: A Simple Poverty Scorecard for the
Page 3 and 4: comparable across organizations nor
Page 5 and 6: Poverty scoring can also be used fo
Page 7 and 8: points or less for estimates of cha
Page 9 and 10: counted as if it had only one perso
Page 11: derived from the 2000 FIES by the N
Page 15 and 16: Reyes builds a scorecard using the
Page 17 and 18: that quickly show how estimated pov
Page 19 and 20: 3.3 Gwatkin et al.Gwatkin et al. (2
Page 21 and 22: includes income, the PCA index cann
Page 23 and 24: One of these one-indicator scorecar
Page 25 and 26: The scorecard in Figure 1 is ready
Page 27 and 28: If not determined by other factors,
Page 29 and 30: 6.1 Calibrating scores with poverty
Page 31 and 32: 6.2 Accuracy of estimates of househ
Page 33 and 34: The 90-percent confidence interval
Page 35 and 36: 7. Estimates of a group’s poverty
Page 37 and 38: To derive a sample-size formula (or
Page 39 and 40: 21.64n = 0. 55 ⋅⎛ ⎞⎜ ⎟
Page 41 and 42: 8. Estimates of changes in group po
Page 43 and 44: 2002 in the Philippines is the diff
Page 45 and 46: from 0.63 to 0.77 (Figure 10), sugg
Page 47 and 48: To illustrate the use of (8), suppo
Page 49 and 50: the four possible targeting outcome
Page 51 and 52: As an alternative to assigning bene
Page 53 and 54: at a point in time is always less t
Page 55 and 56: ReferencesAdams, N.M.; and D.J. Han
Page 57 and 58: Hentschel, Jesko; Lanjouw, Jean Ols
Page 59 and 60: Onwujekwe, Obinna; Hanson, Kara; an
Page 61 and 62: Stillwell, William G.; Barron, F. H
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Figure 1: A simple poverty scorecar
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Figure 3: Poverty indicators by unc
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Figure 3 (cont.): Poverty indicator
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National Poverty Line Tables(and Ta
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Figure 5 (National poverty line): D
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Figure 7 (National poverty line): B
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Figure 9 (National poverty line): D
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Figure 11 (All poverty lines): Poss
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Figure 13 (National poverty line):
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Figure 4 (National food poverty lin
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Figure 7 (National food poverty lin
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Figure 12 (National food poverty li
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USAID “Extreme” Poverty Line Ta
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Figure 5 (USAID “Extreme” pover
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Figure 9 (USAID “Extreme” pover
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Figure 13 (USAID “Extreme” pove
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Figure 4 (USD1.25/day 2005 PPP line
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Figure 12 (USD1.25/day 2005 PPP lin
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USD2.50/Day 2005 PPP Poverty Line T
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USD5.00/Day 2005 PPP Poverty Line T
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National Poverty Line Tablesfor 200
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Figure 9 (National line): Differenc
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Figure 13 (National line): For a gi
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Figure 7 (Food line): Bootstrapped
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Figure 12 (Food line): Households b
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USAID “Extreme” Poverty Line Ta
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Figure 9 (USAID “extreme” line)
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Figure 13 (USAID “extreme” line
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USD2.50/day 2005 PPP Poverty Line T
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USD5.00/day 2005 PPP Poverty Line T
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Poverty Lines and Poverty Rates,by
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Figure A2: All-urban Philippines an
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Figure A4: Agusan del Norte, povert
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Figure A6: Aklan, poverty lines and
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Figure A8: Antique, poverty lines a
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Figure A10: Bataan, poverty lines a
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Figure A12: Batangas, poverty lines
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Figure A14: Bohol, poverty lines an
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Figure A16: Bulacan, poverty lines
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Figure A18: Camarines Norte, povert
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Figure A20: Camiguin, poverty lines
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Figure A22: Catanduanes, poverty li
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Figure A24: Cebu, poverty lines and
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Figure A26: Davao del Sur, poverty
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Figure A28: Eastern Samar, poverty
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Figure A30: Ilocos Norte, poverty l
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Figure A32: Iloilo, poverty lines a
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Figure A34: Kalinga, poverty lines
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Figure A36: Laguna, poverty lines a
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Figure A38: Lanao del Sur, poverty
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Figure A40: Maguindanao, poverty li
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Figure A42: Marinduque, poverty lin
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Figure A44: Misamis Occidental, pov
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Figure A46: Mountain Province, pove
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Figure A48: Negros Oriental, povert
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Figure A50: Northern Samar, poverty
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Figure A52: Nueva Vizcaya, poverty
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Figure A54: Oriental Mindoro, pover
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Figure A56: Pampanga, poverty lines
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Figure A58: Quezon, poverty lines a
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Figure A60: Rizal, poverty lines an
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Figure A62: Western Samar, poverty
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Figure A64: Sorsogon, poverty lines
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Figure A66: Southern Leyte, poverty
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Figure A68: Sulu, poverty lines and
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Figure A70: Surigao del Sur, povert
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Figure A72: Tawi-tawi, poverty line
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Figure A74: Zamboanga del Norte, po
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Figure A76: 2nd District, poverty l
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Figure A78: 4th District, poverty l
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Figure A80: Biliran, poverty lines
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Figure A82: Saranggani, poverty lin
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Figure A84: Compostela Valley, pove
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Figure A86: Shariff Kabunsuan, pove
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Figure A88: Isabela City, poverty l
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A Simple Poverty Scorecard for the Philippines

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