Capturing Perception to Poverty using Conjoint Analysis & Partial Profile Choice Experiment

TL;DR

This paper applies conjoint analysis and partial profile choice experiments to understand perceptions of poverty components, analyzing their importance and interactions within a utility-based framework using survey data.

Contribution

It introduces a utility-based experimental design to capture perceptions of poverty components and models their interactions, providing empirical insights into their relative importance.

Findings

Coefficients indicate the utility derived from poverty components.

Statistical significance of the components was established.

Discrepancies between bootstrap and original models suggest need for larger, more homogeneous samples.

Abstract

The objective of this study is applying a utility based analysis to a comparatively efficient design experiment which can capture people's perception towards the various components of a commodity. Here we studied the multi-dimensional poverty index and the relative importance of its components and their two-factor interaction effects. We also discussed how to model a choice based conjoint data for determining the utility of the components and their interactions. Empirical results from survey data shows the nature of coefficients, in terms of utility derived by the individuals, their statistical significance and validity in the present framework. There has been some discrepancies in the results between the bootstrap model and the original model, which can be understood by surveying more people, and ensuring comparative homogeneity in the data.