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Poverty Equivalent Growth Rate

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  • Nanak Kakwani
  • Hyun H. Son
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    Abstract

    This paper proposes a new type of growth rate, called the "poverty equivalent growth rate" (PEGR), which takes into account both the growth rate in mean income and how the benefits of growth are distributed between the poor and the non-poor. The proposed measure satisfies a basic requirement that the proportional reduction in poverty is a monotonically increasing function of the PEGR. Thus, maximizing the PEGR implies a maximum reduction in poverty. The paper demonstrates that the magnitude of PEGR determines the pattern of growth: whether growth is pro-poor in relative or absolute sense or is "poverty reducing" pro-poor. The pattern of growth has been analyzed for Brazil using the National Household Survey (PNAD) covering the period 1995-2005. Copyright 2008 The Authors. Journal compilation 2008 International Association for Research in Income and Wealth Published by Blackwell Publishing.

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    File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1475-4991.2008.00293.x/enhancedabs
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    Bibliographic Info

    Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

    Volume (Year): 54 (2008)
    Issue (Month): 4 (December)
    Pages: 643-655

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    Handle: RePEc:bla:revinw:v:54:y:2008:i:4:p:643-655

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    Cited by:
    1. Dorothée Boccanfuso & G. Rodolphe A. Missinhoun & Luc Savard, 2010. "Réformes economiques et croissance pro-pauvre : une application macro-micro aux Philippines," Recherches économiques de Louvain, De Boeck Université, vol. 76(3), pages 257-288.
    2. David Madden, 2013. "Winners and Losers on the Roller-Coaster: Ireland, 2003-2011," Working Papers 201315, School Of Economics, University College Dublin.
    3. Flaviana Palmisano & Dirk Van de gaer, 2013. "History dependent growth incidence: A characterisation and an application to the economic crisis in Italy," Working Papers 314, ECINEQ, Society for the Study of Economic Inequality.
    4. Kenneth Hartgen & Stephan Klasen & Mark Misselhorn, 2009. "Pro-Poor Progress in Education in Developing Countries?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 8, Courant Research Centre PEG.
    5. Kacem, Rami Ben Haj, 2012. "Monetary versus non-monetary pro-poor growth: Evidence from rural Ethiopia between 2004 and 2009," Economics Discussion Papers 2012-62, Kiel Institute for the World Economy.
    6. Kakwani, Nanak & Neri, Marcelo & Son, Hyun H., 2009. "Linkages between Pro-Poor Growth, Social Programmes and Labour Market: The Recent Brazilian Experience," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    7. Essama-Nssah, B. & Bassole, Leandre, 2010. "A counterfactual analysis of the poverty impact of economic growth in Cameroon," Policy Research Working Paper Series 5249, The World Bank.
    8. Kacem, Rami Ben Haj, 2013. "Monetary versus non-monetary pro-poor growth: Evidence from rural Ethiopia between 2004 and 2009," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 7(26), pages 1-22.
    9. Deutsch, Joseph & Silber, Jacques, 2011. "On various ways of measuring pro-poor growth," Economics Discussion Papers 2011-13, Kiel Institute for the World Economy.
    10. Alma Kudebayeva & Armando Barrientos, 2013. "A decade of poverty reduction in Kazakhstan 2000-2009: growth and/or redistribution?," Brooks World Poverty Institute Working Paper Series 18713, BWPI, The University of Manchester.
    11. Peragine, Vito & Palmisano, Flaviana & Brunori, Paolo, 2013. "Economic Growth and equality of opportunity," Policy Research Working Paper Series 6599, The World Bank.
    12. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," Journal of Economic Inequality, Springer, vol. 8(4), pages 491-524, December.
    13. Kakwani, Nanak & Neri, Marcelo Côrtes & Son, Hyun H., 2010. "Linkages Between Pro-Poor Growth, Social Programs and Labor Market: The Recent Brazilian Experience," World Development, Elsevier, vol. 38(6), pages 881-894, June.
    14. Buhong Zheng, 2011. "Consistent comparison of pro-poor growth," Social Choice and Welfare, Springer, vol. 37(1), pages 61-79, June.

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