Comparing the Parametric and Semiparametric Logit Models: Household Poverty in Turkey

Ebru CAGLAYAN, Tugba DAYIOGLU

Abstract


The objectives of this paper are to determine the factors which could affect the poverty status and living standards of a household and to illustrate the probabilities of poverty in households in Turkey using parametric and semi-parametric logit models. We use the data of the Turkish Household Budget Survey prepared by the Turkish Statistical Institute (TURKSTAT) for the year 2008. The semi-parametric method that combines the best features of the parametric and the non parametric approaches is introduced when the parametric model assumptions are violated. The results indicate that the most important determinants of poverty are the working status and occupation of household head, income, and ratio of worker in household and region.


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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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