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Assessing Aggregate Welfare: Growth and Inequality in Argentina

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Author Info
Leonardo Gasparini
Walter Sosa

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Abstract

The main goal of this paper is to complement the Argentine mean income series from National Accounts with inequality estimates in order to obtain aggregate welfare series, which are a better measure of economic performance than the commonly used per capita income statistics. Inequality indices are computed from household survey data adjusted for non-response and income underreporting. The statistical significance of changes in inequality and welfare measures is checked using bootstrapping techniques. o­ne of the main conclusions of the paper is that while welfare assessments coincide among different value judgments in some periods (e.g. 1991-1994), they widely vary in some others, particularly between 1994 and 1998, when the economy experienced moderate growth and large increases in inequality. It is argued that the period 1994-1998 provides an unprecedented laboratory for distinguishing the social preferences of different analysts, according to their evaluation of the performance of the Argentine economy.

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Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.

Volume (Year): 38 (2001)
Issue (Month): 113 ()
Pages: 49-71
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Handle: RePEc:ioe:cuadec:v:38:y:2001:i:113:p:49-71

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Related research
Keywords: Income Distribution; inequality; welfare; Latin America; Argentina;

Find related papers by JEL classification:
D3 - Microeconomics - - Distribution
D6 - Microeconomics - - Welfare Economics
C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

Cited by:
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  1. Paula Giovagnoli & Georgina Pizzolitto & Julieta Trías, 2005. "Monitoring the Socio-Economic Conditions in Chile," Working Papers 0019, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  2. Juan M. Sanchez, 2004. "Universitary Financing and Welfare: A Dynamic Analysis with Heterogeneous Agents and Overlapping Generations," Macroeconomics 0402001, EconWPA. [Downloadable!]
  3. Monserrat Bustelo, 2004. "Caracterización de los Cambios en la Desigualdad y la Pobreza en Argentina Haciendo Uso de Técnicas de Descomposiciones Microeconometricas (1992-2001)," Working Papers 0013, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  4. Ugo Panizza & Mónica Yañez, 2005. "Why are Latin Americans so unhappy about reforms?," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 1-29, May. [Downloadable!]
    Other versions:
  5. Leonardo Gasparini, 2003. "Income Inequality in Latin America and the Caribbean: Evidence from Household Surveys," Working Papers 0002, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  6. Fields, Gary S. & Sanchez Puerta, Maria Laura, 2008. "Earnings Mobility in Times of Growth and Decline: Argentina from 1996 to 2003," Working Papers RP2008/06, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  7. Hernán Winkler, 2005. "Monitoring the Socio-Economic Conditions in Uruguay," Working Papers 0026, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
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