EFFICIENCY OF MEDIAN PER CAPITA EXPENDITURE METHOD FOR MEASURING THE LEVELS OF POVERTY IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
Measurement of levels of poverty is a powerful instrument for focusing the attention of policy makers on the living conditions of the poor. Previous studies on measurement of poverty in Nigeria have adopted two-third of mean per capita expenditure method for defining the poverty line. This has failed to capture the number of poor skewness in household expenditure data. Therefore, this study was designed to access the efficiency of Median Per Capita Expenditure (MPCE) method in measuring poverty in Nigeria. Expenditure data from the 2006 general household survey from National Bureau of Statistics (NBS), Nigeria were collected. A standard distribution software was used to fit four distributions (log normal, log logistic, gamma and frechet) to per capita expenditure using Maximum Likelihood Estimation (MLE) method. The distributions were ranked using Kolmogorov Smirnov goodness-of-fit statistic. Any distribution with p value < 0.05 was considered good. The MPCE and the corresponding value for two-third mean per capita expenditure were obtained for comparison. Foster-GreerThorbecke poverty index was used to determine the proportion of poverty for the states. Differences in the lowest poor and highest poor states were investigated using the Z test. Using two-third mean and MPCE, a bootstrap simulation was performed on the expenditure data to obtain precision estimates for poverty headcount index. This was carried out for the purpose of comparing the two-third mean per capita and the MPCE methods as well as the relative gain in efficiency. Log logistic distribution with parameter estimates (α=1.0452, β=3169.2) performed best, (p < 0.000014805) in fitting per capita expenditure data. The MPCE was N2,550.00 while the Two-third Mean Per Capita Expenditure (TMPCE) was N3,613.75 per month respectively. The proportion of the poor was 50.1% using MPCE but rose to 61.6% when TMPCE was used. Across states, the proportion of the poor was highest in Katsina state (52.7%) and lowest in Anambra state (42.9%) using MPCE method. However, poverty was highest in Kwara state (73.9%) and lowest in Anambra state (48.3%) using TMPCE method. The difference between the proportions were highly significant (P < 0.003) for MPCE and not significant (P < 0.246) for two-third mean per capita expenditure. The precision estimates were 2.50 x 10-05 and 9.78x10-05 for median and two-third mean per capita methods respectively and the relative gain in efficiency of the median method over two-third of mean method was 25.5%. Median rather than two-third of mean per capita expenditure was a more efficient method for measuring poverty. Therefore, for improved precision of poverty measurements in Nigeria, median per capita expenditure would be a better approach.
Related Project Materials
THE PROBLEMS AND PROSPECT OF MANAGEMENT OF STUDENTS HOSTEL ACCOMMODATION IN HIGHER INSTITUTION IN NIGERIA
ABSTRACT
Problems and prospects of student hostile Accommodation problem in IMT, is the topic of this write-up. Th...
MICRO FINANCIAL INSTITUTIONS AND THEIR IMPACT ON THE GROWTH OF SMALL AND MEDIUM SCALE BUSINESS
Background to the Study
The development of the various sectors of any economy is the basis for its survival, different m...
FACTOR'S AFFECTING UTILIZATION OF PRIMARY HEALTH CARE FACILITIES
BACKGROUND OF THE STUDY
The goal of primary health care (PHC) was to provide accessible health for all by the year 2000...
ROLE OF A SECRETARY IN OFFICE ADMINISTRATION AND MANAGEMENT
ABSTRACT
This topic is the role of and management with particular reference to the ministry of finance,...
DIFFICULT CONCEPTS IN CHEMISTRY AND THEIR EFFECTS ON THE ACHIEVEMENT OF STUDENTS
ABSTRACT
This research work was carried out to investigate the difficult concepts in chemistry and their effects on the...
THE POLITICAL ECONOMY OF CROSS BORDER CRIMES AND SOCIO-ECONOMIC DEVELOPMENT OF ECOWAS MEMBER STATES (A CASE STUDY OF NIGERIA)
Abstract
The study discovered in details the security challenges in the era of globalization in Nigeri...
IMPACT OF PRODUCT ADVERTISEMENT ON SALES VOLUME OF COMPANIES
ABSTRACT
Advertising is directed to the consumers or target audiences through various media in order to present and prom...
THE IMPLICATION AND BENEFIT OF THE USE OF SOFTWARES IN BUILDING PROJECT CONSTRUCTION
ABSTRACT
Software is any set of machine-readable instruction that dir...
THE EFFECT OF SCHOOL LOCATION IN THE ACADEMIC PERFORMANCE OF SECONDARY SCHOOL STUDENTS IN NIGERIA
ABSTRACT
This study was carried out to examine the effect of school location on the academic perfor...
ESTIMATION OF SOIL HYDROLOGICAL CHARACTERISTICS USING STRUCTURE AND TEXTURE
ABSTRACT
Hydrologic analyses often involve the evaluation of soil water in-filtration, conductivity, st...
