Predicting Sub-National Poverty Incidence for Pakistan

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This research note provides sub-national estimates of monetary poverty with the help of information available in two household surveys conducted during 2010-11. Data of Pakistan Social and Living Standards Measurement Survey (PSLM) and Household Integrated Economic Survey (HIES) are combined to produce aggregate poverty measures using small area estimation technique. The technique uses the welfare function to estimate and predict poverty with the help of non-monetary poverty correlates. This study estimates consumption functions separately for urban and rural areas from the HIES dataset and the coefficients of the estimated functions are applied to the PSLM dataset in order to predict poverty for provinces, regions and districts.