Proxy Means Test (PMT) analysis of poverty in Oyo State

This study attempts an assessment of the effectiveness of the proxy means test (PMT) procedure in achieving better targeting of the poor in Oyo State, Nigeria. This is because proper identification and corresponding targeting of the poor is still a challenge in poverty analysis in Africa. The PMT method was therefore used to estimate household expenditures, corresponding poverty statuses of the households, inclusion and exclusion rates using data from the National Living Standard Survey (NLLS) for the five poverty lines considered. The PMT method gave higher percentages of the poor compared to the conventional method for all the five poverty lines. The implication of this finding is that the PMT method could indeed be used alternatively for improved targeting of the poor, especially in Oyo State.Keywords: Poverty, Proxy Means Test (PMT), Poverty lines, Oyo State, Afric

Censored Foster Greer Thorbecke (FGT) indexes in poverty analysis in Nigeria

This study is an attempt to assess the prospects of censoring in one-dimensional poverty analysis in Nigeria. The conventional method involves truncation of the non-poor households and this often leads to measurement error. Censoring instead of truncation was considered using data from the Nigeria General Household Survey (NGHS) Panel Survey. The estimated poverty indices obtained via censoring gave higher precision estimates compared to the indices obtained traditionally. This finding implies that censoring could reduce the problem of measurement error involved in the traditional poverty analytical procedures.Keywords: Censoring, Measurement error. One-dimensional, Poverty analysis, Poverty indice