The paper shows how to compute the elasticities of poverty measures (the poors head-count ratio, Sen’s poverty index and the measure of Foster, Greer and Thorbecke) in relation to the mean income (µ) and in relation to the Gini index (G), assuming that the income distribution is lognormal, analysing how these poverty elasticities vary as functions of µ and G. The elasticities of the poors head-count ratio are computed for Brazil and its states in 1999, considering the distribution of per capita household income, comparing the results with those obtained by Marinho and Soares (2003) with other methodology. The two estimates show very similar patterns of variation between Brazilian states. The obvious advantage of the method used in this paper is the possibility to compute the elasticities using only the values of µ and G for an income distribution. The elasticities are also computed for 2001 and 2002.
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Article provided by ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics] in its journal Economia.
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