A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey

Abstract

Determining the poverty threshold using a meaningful measure is complex. In this study, we deviated from usual techniques. Instead, we employed a nonparametric approach in conducting a comparative analysis. Using the Philippine Family Income and Expenditure Survey, we estimated national and regional Epanechnikov kernel densities to understand how poverty evolved from 2000 to 2015. Results indicated that improvements in Philippine poverty incidence are attributable to various government poverty alleviation programs and to improvements in the country's economic performance. The consolidated picture of poverty generated prompted a pluralistic approach to poverty alleviation such as attention on agricultural reform and rural development; national industrialization policy; supportive trade, financial, and investment policies; and robust social protection policies. All of which require stakeholder coordination.