13.07.2015 Views

A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

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Reyes builds a scorecard using <strong>the</strong> 2000 FIES, choosing indicators by eyeballingcross-tabulations with poverty status and <strong>the</strong>n deriving <strong>the</strong>ir points via a logitregression on poverty status. The indicators are:• Ownership of consumer durables:— Television— VCD/VHS/DVD— Refrigerator— Washing machine— Air conditioner— Car/jeep/motor vehicle— Telephone— Computer— Microwave oven• Residence characteristics:— Whe<strong>the</strong>r housing is makeshift— Whe<strong>the</strong>r <strong>the</strong> household is an in<strong>for</strong>mal settler— Use of sanitary toilet facilities— Use of electricity— Use of safe water supply• Whe<strong>the</strong>r <strong>the</strong> household head is engaged in agriculture 11As in this paper, Reyes’ indicators are few, simple, verifiable, and easy-to-collect.They differ in number (15 versus 10) and in that Reyes’ asset indicators tend tocharacterize households far above <strong>the</strong> poverty line. Also, Reyes’ scorecard is presentedas a table of regression coefficients with negative values, seven decimal places, andnames like “hwvtr” and “hmkshft”; this <strong>for</strong>mat, while ma<strong>the</strong>matically correct, mayfrighten <strong>the</strong> local government officials who are expected to implement it.As in this paper, Reyes tests targeting accuracy <strong>for</strong> a range of cut-offs. Forexample, targeting those with poverty likelihoods of 50 percent or more would cover11Reyes found that an urban/rural indicator was not statistically significant.8

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