Poverty measurement and analysis using non-monetary approach : the case of Tanzania.

Abstract

The thesis has considered an asset-based alternative to the conventional use of consumption or expenditure in defining well-being and poverty. The motivation for the study was to derive a measure of economic status by households in the absence of income or consumption data. This is particularly important for a country like Tanzania where consumption, expenditure and price data are either limited or unavailable. The thesis uses data from The Tanzania 2002 Population and Housing Census information on housing conditions and ownership of certain durable goods to construct an asset index. This index is a proxy for long-run household wealth. When tested for reliability the asset index was found to be robust, coherent and a good predictor for economic status among the "poor" and "non-poor". The study has revealed that with further research, poverty analysts in Tanzania may also use the household asset index as an explanatory or as a means of mapping welfare in the country.