Global Poverty Estimates: A Sensitivity Analysis

SummaryCurrent estimates of global poverty vary substantially across studies. We undertake a sensitivity analysis to highlight the importance of methodological choices by measuring global poverty using different data sources, parametric and nonparametric estimation methods, and multiple poverty lines. Our results indicate that estimates of global poverty vary significantly when they are based alternately on data from household surveys versus national accounts but are relatively consistent across estimation methods. The decline in poverty over the past decade is found to be robust across methodological choices.