71 research outputs found

    Poverty: Looking for the Real Elasticities

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    After decades of intensive research on the statistical size distribution of income and despite its empirical weaknesses, the lognormal distribution still enjoys an important popularity in the applied literature dedicated to poverty and inequality. In the present study, we emphasize the drawbacks of this choice for the calculation of the elasticities of poverty. Using last version of WIID database, we estimate the growth and inequality elasticities of poverty using 1,842 income distributions under fifteen rival distribution assumptions. Our results confirm that the lognormal distribution is not appropriate for the analysis of poverty. Most of the time, it implies an overestimation of the elasticities and bias our estimation of the relative impact of growth and redistribution on poverty alleviation.cerdi

    Erratum to ``The estimation of the growth and redistribution components of changes in poverty: a reassessment'''

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    This erratum corrects some typos and misspecifications in Bresson (2008).

    Poverty: Looking for the Real Elasticities

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    After decades of intensive research on the statistical size distribution of income and despite its empirical weaknesses, the lognormal distribution still enjoys an important popularity in the applied literature dedicated to poverty and inequality. In the present study, we emphasize the drawbacks of this choice for the calculation of the elasticities of poverty. Using last version of WIID database, we estimate the growth and inequality elasticities of poverty using 1,842 income distributions under fifteen rival distribution assumptions. Our results confirm that the lognormal distribution is not appropriate for the analysis of poverty. Most of the time, it implies an overestimation of the elasticities and bias our estimation of the relative impact of growth and redistribution on poverty alleviation.

    The estimation of the growth and redistribution components of changes in poverty: a reassessment

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    What are the respective contributions of growth and inequality changes to observed poverty variations? Many studies have attempted to provide some empirical evidence to answer this question using case studies with decompositions of observed poverty spells. Most of them rely on two decomposition frameworks suggested by Datt & Ravallion (1992) on the one hand, and Shorrocks (1999) and Kakwani (2000) on the other hand. However, despite their properties, these techniques are not appropriate for such an accounting exercise. Here, following Muller (2006), we propose an alternative decomposition procedure that is consistent with definitions of growth and inequality effects stemming from time-integral calculus. Contrary to the aforementioned methods, the proposed technique simultaneously fits the observed pattern of income distributions changes and does not produce large residual components.Poverty variations decomposition

    “Leftist”, “Rightist” and Intermediate Decompositions of Poverty Variations with an Application to China from 1990 to 2003

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    This paper investigates the influence of invariance axioms in the decomposition of observed poverty variations into growth and inequality effects. After a complete and critical review of the invariance axioms suggested in the literature, we show that few information is needed for the ordering of the effects respectively obtained through scale, translation and intermediate invariance. Using Chinese data for the period 1990-2003, we find that some commonly observed results of the decomposition are contingent to the invariance axiom choices whilst other are robust to changes in ethical preferences.Poverty;inequality effect;growth effect;Decomposition;scale invariance;translationinvariance;intermediate invariance;China

    “Leftist”, “Rightist” and Intermediate Decompositions of Poverty: Variations with an Application to China from 1990 to 2003

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    This paper investigates the influence of invariance axioms in the decomposition of observed poverty variations into growth and inequality effects. After a complete and critical review of the invariance axioms suggested in the literature, we show that few information is needed for the ordering of the effects respectively obtained through scale, translation and intermediate invariance. Using Chinese data for the period 1990-2003, we find that some commonly observed results of the decomposition are contingent to the invariance axiom choices whilst other are robust to changes in ethical preferences.Poverty, inequality effect, growth effect, decomposition, scale invariance, translation invariance, intermediate invariance, China.

    “Leftist”, “Rightist” and Intermediate Decompositions of Poverty Variations with an Application to China from 1990 to 2003

    Get PDF
    This paper investigates the influence of invariance axioms in the decomposition of observed poverty variations into growth and inequality effects. After a complete and critical review of the invariance axioms suggested in the literature, we show that few information is needed for the ordering of the effects respectively obtained through scale, translation and intermediate invariance. Using Chinese data for the period 1990-2003, we find that some commonly observed results of the decomposition are contingent to the invariance axiom choices whilst other are robust to changes in ethical preferences.Poverty, inequality effect, growth effect, Decomposition, scale invariance, translationinvariance, intermediate invariance, China

    Poverty: Looking for the Real Elasticities

    Get PDF
    After decades of intensive research on the statistical size distribution of income and despite its empirical weaknesses, the lognormal distribution still enjoys an important popularity in the applied literature dedicated to poverty and inequality. In the present study, we emphasize the drawbacks of this choice for the calculation of the elasticities of poverty. Using last version of WIID database, we estimate the growth and inequality elasticities of poverty using 1,842 income distributions under fifteen rival distribution assumptions. Our results confirm that the lognormal distribution is not appropriate for the analysis of poverty. Most of the time, it implies an overestimation of the elasticities and bias our estimation of the relative impact of growth and redistribution on poverty alleviation

    Pauvreté : à la recherche des élasticités réelles

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    Après des décennies de recherches intensives sur les distributions de revenus et malgré ses faiblesses empiriques, la loi log-normale jouit encore d'une popularité importante dans la littérature relative à la pauvreté et aux inégalités. La présente étude tente de mettre en évidence les inconvénients d'un tel choix pour le calcul d'élasticités de la pauvreté. À l'aide de la dernière version de la base WIID, des élasticités croissance et inégalités de la pauvreté ont été estimées pour 1~842 distributions avec une quinzaine de d'hypothèses distributives alternatives. Nos résultats montrent combien l'hypothèse de log-normalité est peu appropriée pour l'analyse de la pauvreté. En effet, elle implique généralement une surestimation des élasticités et ne permet pas une bonne appréciation de l'impact relatif de la croissance et de la redistribution sur la pauvreté.cerdi

    Un cadre général pour le calcul des élasticités inégalités de la pauvreté

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    Many authors have recently emphasized the crucial role of income inequalities in the design of efficient policies aimed at reducing poverty. However, the link between variations of the degree of inequality and variations of poverty are not well documented. The literature, for instance, does not provide any satisfying tool for predicting how a small relative variation of the Gini index can be associated to a variation of the headcount index. In the present paper, we define a family of Lorenz curve transformations that can directly be interpreted in terms of relative variations of known inequality measures. Then, we extend pcitet{kakwani-93} methodology for the calculation of inequality elasticities of poverty. Improvements are threefold with respect to pcitet{kakwani-93} works. First, our formulas do not confine to the sole Gini index. Secondly, they embrace the uncertainty and the complexity of the mechanical link between inequality and poverty. Third, using some flexible functional form, one can easily perform an accurate estimation of the point inequality elasticities of poverty corresponding to observed variations of a given income distribution. Finally, we propose a simple measure that may be helpful to assess how ``pro-poor'' are inequality variations by comparing the observed elasticities with the set of theoretical elasticities that could be obtained from the initial income distribution.inegalites, pauvrete, courbe de Lorenz, elasticites
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