| The measurement of per capita daily expenditures which are compared with a monetary poverty line is the most widely used approach regarding poverty assessment. It is, however, based on the implementation of time and cost-intensive household surveys and, therefore, not an operational method for targeting poor households with development services. The paper shows how to identify an alternative poverty assessment tool for Peru. It consists of a maximum of 15 powerful predictors of per-capita household expenditures selected out of a wide range of indicators from different poverty dimensions such as education, assets and housing characteristics. By applying the maximizing-R-squared regression technique to identify the best 5 to 15 predictors, we avoid an... |
