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Poverty in Ireland, 1987-1994 - A Stochastic Dominance Approach

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  • David Madden

    (University College Dublin)

  • Fiona Smith

Abstract

Poverty dominance analysis uses stochastic dominance to provide rankings of distributions in terms of poverty which are not sensitive to the choice of poverty line. This analysis is carried out for Ireland using Household Budget Survey data for 1987 and 1994 including tests for the statistical significance of the results. We find that for a wide range of absolute poverty lines, poverty in Ireland fell over the 1987-1994 period. When relative poverty lines are used, second-order dominance for 1987 over 1994 is found for the case of expenditure and third-order dominance for 1994 over 1987 for the case of income.

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File URL: http://www.esr.ie/vol31_3/1Madden.pdf
File Function: First version, 2000
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 31 (2000)
Issue (Month): 3 ()
Pages: 187-214

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Handle: RePEc:eso:journl:v:31:y:2000:i:3:p:187-214

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  1. Richard Blundell & Ian Preston, 1998. "Consumption Inequality And Income Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 603-640, May.
  2. David Madden, 1999. "Relative or Absolute Poverty Lines - A New Approach," Working Papers 199909, School Of Economics, University College Dublin.
  3. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  4. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
  5. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
  6. Miles S. Kimball, 1989. "Precautionary Saving in the Small and in the Large," NBER Working Papers 2848, National Bureau of Economic Research, Inc.
  7. Ferreira, Francisco H. G. & Litchfield, Julie A., 1998. "Calm after the storms : income distribution in Chile, 1987-94," Policy Research Working Paper Series 1960, The World Bank.
  8. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  9. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  10. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-27, July.
  11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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Cited by:
  1. Servaas van der Berg & Debra Shepherd, 2010. "Signalling performance: Continuous assessment and matriculation examination marks in South African schools," Working Papers 28/2010, Stellenbosch University, Department of Economics.
  2. David Madden, 2006. "Body Mass Index and the Measurement of Obesity," Health, Econometrics and Data Group (HEDG) Working Papers 06/11, HEDG, c/o Department of Economics, University of York.
  3. Brian Nolan & Bertrand Maitre, 2000. "A Comparative Perspective on Trends in Income Inequality in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(4), pages 329-350.
  4. Somnath Chattopadhyay, 2011. "Earnings efficiency and poverty dominance analysis: a spatial approach," Economics Bulletin, AccessEcon, vol. 31(3), pages 2298-2318.
  5. David Madden, 2013. "The Poverty Effects of a “Fat-Tax” in Ireland," Working Papers 201303, School Of Economics, University College Dublin.
  6. Wasiu Adekunle Are, 2012. "Growth and Income Redistribution Components of Changes in Poverty: A Decomposition Analysis for Ireland, 1987-2005," Working Papers 201231, School Of Economics, University College Dublin.
  7. David Madden, 2002. "A Review of Recent Research into Poverty in Ireland," Working Papers 200232, School Of Economics, University College Dublin.

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