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TIPs for the Analysis of Poverty in Mexico, 1992-2005

  • Economics


This paper proposes some changes to the official methodology that is currently in use to measure the state of poverty in Mexico. Among other suggestions, it is recommended the use of bootstrapping to estimate confidence intervals for the poverty statistics, as well as the use of dominance analysis when making intertemporal comparisons. In particular, since poverty lines change over time, the paper proposes the use of TIP curves for that end. Using the eight surveys that were made during the period 1992-2005, the paper presents a large number of absolute poverty statistics and TIP curves, as well as comparisons among them. One of the findings is the deterioration of the living conditions of the poorest among the poor, about a half million people, with respect to the conditions they endured before the 1994 economic crisis.

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