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International Journal of Basic, Applied and Innovative Research

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

O.I. Osowole, J Ajibola, R.N. Nwaka, K.O. Balogun

Abstract


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 indices




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