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Statistical Inference and Decomposable Poverty Measures

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  • Bishop, John A
  • Chow, K Victor
  • Zheng, Buhong
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    Abstract

    The paper develops simple statistical test procedures for generalized decomposable poverty measures. It is shown that the estimates of the decomposable poverty indices, including the overall and various sub-group poverty indices, have (asymptotic) jointly normal distributions. The full variance-covariance structure is derived and can be estimated consistently without prior specification of the population density underlying the sample data. The (overall/decomposed) poverty indices can thus be used as tools for statistical inference instead of simply as descriptive statistics. We illustrate the test procedure by examining the contributions of whites and non-whites to total U.S. poverty in 1975 and 1985. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Bulletin of Economic Research.

    Volume (Year): 47 (1995)
    Issue (Month): 4 (October)
    Pages: 329-40

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    Handle: RePEc:bla:buecrs:v:47:y:1995:i:4:p:329-40

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    Cited by:
    1. Buhong Zheng, 2004. "Poverty comparisons with dependent samples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 419-428.
    2. Lars Osberg & Kuan Xu, 1998. "Poverty Intensity - How Well Does Canada Compare?," Department of Economics at Dalhousie University working papers archive canpov, Dalhousie, Department of Economics.
    3. Robert H. DeFina, 2007. "A comparison of poverty trends and policy impacts for working families using different poverty indexes," Working Papers 07-13, Federal Reserve Bank of Philadelphia.
    4. Stefan Dercon & Pramila Krishnan, 1998. "Changes in poverty in rural Ethiopia 1989-1995: measurement, robustness tests and decomposition," Economics Series Working Papers WPS/1998-07, University of Oxford, Department of Economics.
    5. Sudip Ranjan Basu & Jaya Krishnakumar & Gabriela Flores, 2004. "Spatial Distribution of Welfare Across States and Different Socio-Economic Groups in Rural and Urban India," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2004.14, Institut d'Economie et Econométrie, Université de Genève.
    6. Stephen Bazen & Xavier Joutard & Mouhamadou M. Niang, 2012. "The Duration-Based Measurement of Unemployment. Estimation Issues and an Application to Male-Female Unemployment Differences in France," AMSE Working Papers 1206, Aix-Marseille School of Economics, Marseille, France.
    7. Simler, Kenneth R. & Arndt, Channing, 2006. "Poverty Comparisons with Endogenous Absolute Poverty Lines," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25775, International Association of Agricultural Economists.
    8. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    9. Simler. Kenneth R. & Arndt, Channing, 2006. "Poverty comparisons with absolute poverty lines estimated from survey data," FCND discussion papers 211, International Food Policy Research Institute (IFPRI).
    10. repec:ese:iserwp:2002-10 is not listed on IDEAS
    11. Michał Brzeziński, 2013. "Variance estimation for richness measures," Working Papers 2013-03, Faculty of Economic Sciences, University of Warsaw.
    12. Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
    13. Gabriela Flores & Jaya Krishnakumar & Sudip Ranjan Basu, 2004. "Demand System Estimations and Welfare Comparisons: Application to Indian Household Data," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2004.13, Institut d'Economie et Econométrie, Université de Genève.
    14. Zheng, Buhong, 2001. "Statistical inference for poverty measures with relative poverty lines," Journal of Econometrics, Elsevier, vol. 101(2), pages 337-356, April.
    15. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia.

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