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A Decomposition Analysis of Regional Poverty in Russia

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Author Info
Stanislav Kolenikov
Anthony Shorrocks

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Abstract

The paper applies a new decomposition technique to the study of variations in poverty across the regions of Russia. The procedure, which is based on the Shapley value in cooperative game theory, allows the deviation in regional poverty levels from the all-Russia average to be attributed to three proximate sources: per capita income, inequality, and local prices. Contrary to expectation, regional poverty variations turn out to be due more to differences in inequality across regions than to differences in real income per capita. However, when real income per capita is split into nominal income and price components, differences in nominal incomes emerge as more important than either inequality or price effects for the majority of regions. Copyright United Nations University 2005.

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Article provided by Blackwell Publishing in its journal Review of Development Economics.

Volume (Year): 9 (2005)
Issue (Month): 1 (02)
Pages: 25-46
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Handle: RePEc:bla:rdevec:v:9:y:2005:i:1:p:25-46

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  1. Olivier Bargain, 2009. "The Distributional Effects of Tax-benefit Policies under New Labour - A Shapley Decomposition," Working Papers 200907, School Of Economics, University College Dublin. [Downloadable!]
    Other versions:
  2. Wan, Guanghua & Lu, Ming & Chen, Zhao, 2006. "Globalization and Regional Income Inequality: Empirical evidence from within China," Working Papers RP2006/139, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
    Other versions:
  3. Zhang, Yin & Wan, Guanghua, 2006. "The Impacts of Growth and Inequality on Rural Poverty in China," Working Papers RP2006/94, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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  4. Muller, Adrian, 2006. "Clarifying Poverty Decomposition," Working Papers in Economics 217, Göteborg University, Department of Economics, revised 17 Nov 2008. [Downloadable!]
  5. Kalwij, Adriaan & Verschoor, Arjan, 2005. "A Decomposition of Poverty Trends across Regions: The Role of Variation in the Income and Inequality Elasticities of Poverty," Working Papers RP2005/36, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  6. Essama-Nssah, B., 2004. "A unified framework for pro-poor growth analysis," Policy Research Working Paper Series 3397, The World Bank. [Downloadable!]
  7. Shorrocks, Anthony & Wan, Guanghua, 2008. "Ungrouping Income Distributions: Synthesising Samples for Inequality and Poverty Analysis," Working Papers RP2008/16, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  8. Wan, Guanghua, 2006. "Poverty Accounting by Factor Components: With an Empirical Illustration Using Chinese Data," Working Papers RP2006/63, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  9. Zhang, Yin & Wan, Guanghua, 2005. "Why Do Poverty Rates Differ From Region to Region? The Case of Urban China," Working Papers RP2005/56, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  10. Andrew Jones & Ángel López Nicolás, 2006. "Allowing for heterogeneity in the decomposition of measures of inequality in health," Journal of Economic Inequality, Springer, vol. 4(3), pages 347-365, December. [Downloadable!] (restricted)
    Other versions:
  11. Florencia Lopez Boo, 2006. "Changes in poverty and the stability of income distribution in Argentina: evidence from the 1990s via decompositions," Working Papers 33, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
  12. Yen-Yin Chen & Jung-Hua Wu, 2008. "Simple Keynesian input–output structural decomposition analysis using weighted Shapley value resolution," The Annals of Regional Science, Springer, vol. 42(4), pages 879-892, December. [Downloadable!] (restricted)
  13. Ramani Gunatilaka & Duangkamon Chotikapanich, 2006. "Inequality Trends and Determinants in Sri Lanka 1980-2002: A Shapley Approach to Decomposition," Monash Econometrics and Business Statistics Working Papers 6/06, Monash University, Department of Econometrics and Business Statistics. [Downloadable!]
  14. Zhang, Yin & Wan, Guanghua, 2006. "Poverty Reduction in China: Trends and Causes," Working Papers RP2006/152, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
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