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Role of Growth and Distribution in the Observed Change in Headcount Ratio Measure of Poverty: A Decomposition Exercise for India

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  • L. R. Jain

    (Indian Statistical Institute, New Delhi)

  • Suresh D. Tendulkar

    (Delhi School of Economics)

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    Abstract

    This paper presents a method and analysis the results of decomposing the change in headcount ratio measure of poverty (CHR) between 1970-71 and 1983, separately for rural and urban population of 20 states, into two additive components, viz., one attributable to growth in real average per capita total expenditure (APCTE) (growth effect) and the other to a change in the relative size distribution of PCTE (distribution effect). Based on regression analysis an attempt is also made to explain inter-state variations in CHR with the help of growth in real APCTE and base-year headcount ratio and relate the residual from the regression equation to the distribution effect.

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    Bibliographic Info

    Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

    Volume (Year): 25 (1990)
    Issue (Month): 2 (July)
    Pages: 165-205

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    Handle: RePEc:dse:indecr:v:25:y:1990:i:2:p:165-205

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    Cited by:
    1. Ivica Rubil, 2013. "Accounting for Regional Poverty Differences in Croatia: Exploring the Role of Disparities in Average Income and Inequality," Working Papers 1301, The Institute of Economics, Zagreb.
    2. Samuel Fambon, 2005. "Croissance économique, pauvreté et inégalité des revenus au Cameroun," Revue d’économie du développement, De Boeck Université, vol. 19(1), pages 91-122.
    3. K.K. Subramanian & Syam Prasad, 2008. "Rising inequality with high growth isn't this trend worrisome? Analysis of Kerala experience," Centre for Development Studies, Trivendrum Working Papers 401, Centre for Development Studies, Trivendrum, India.
    4. Zhang, Yin & Wan, Guanghua, 2006. "Poverty Reduction in China: Trends and Causes," Working Paper Series RP2006/152, World Institute for Development Economic Research (UNU-WIDER).
    5. Zhang, Yin & Wan, Guanghua, 2006. "The impact of growth and inequality on rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 694-712, December.
    6. Wan, Guanghua, 2006. "Poverty Accounting by Factor Components: With an Empirical Illustration Using Chinese Data," Working Paper Series RP2006/63, World Institute for Development Economic Research (UNU-WIDER).
    7. Bhanumurthy, N.R. & Mitra, Arup, 2006. "Globalization, Growth and Poverty in India," Working Paper Series RP2006/41, World Institute for Development Economic Research (UNU-WIDER).
    8. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).

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