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Removing the anonymity axiom in assessing pro-poor growth

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Michael Grimm ()

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Abstract

The recent focus on ‘pro-poor growth’ led also to an intense debate on how exactly to define and to measure pro-poor growth. All suggested measures have in common that they are based on the anonymity axiom. Such a perspective may provide a very incomplete picture given that the common objective of most studies investigating the pro-poorness of growth is to test whether specific policy reforms where beneficial to the initially poor or not. I suggest a new concept of pro-poor growth which removes the anonymity axiom, and, using an illustration based on data from Indonesia and Peru, I check whether the assessment of pro-poor growth is different when an anonymous and a non anonymous approach to pro-poor growth is used. I also suggest an original decomposition of poverty changes over time which links both concepts. The results show that the choice of the approach has a drastic impact on the interpretation of the data. Copyright Springer Science+Business Media, Inc. 2007

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Article provided by Springer in its journal The Journal of Economic Inequality.

Volume (Year): 5 (2007)
Issue (Month): 2 (August)
Pages: 179-197
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Handle: RePEc:kap:jecinq:v:5:y:2007:i:2:p:179-197

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Keywords: anonymity axiom convergence decomposition mobility pro-poor growth

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  1. Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2002. "Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru," Working Papers DT/2002/17, DIAL (Développement, Institutions & Analyses de Long terme), revised Oct 2003. [Downloadable!]
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  2. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March. [Downloadable!] (restricted)
  3. Jean-Yves Duclos & Peter Lambert, . "A Normative Approach to Measuring Classical Horizontal Inequity," Discussion Papers 97/3, Department of Economics, University of York. [Downloadable!]
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  4. Carneiro, Pedro & Hansen, Karsten T. & Heckman, James J., 2002. "Removing the Veil of Ignorance in Assessing the Distributional Impacts of Social Policies," IZA Discussion Papers 453, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Louis Kaplow, 1989. "Horizontal Equity: Measures in Search of a Principle," NBER Working Papers 1679, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Alan J. Auerbach & Kevin A. Hassett, 2002. "A New Measure of Horizontal Equity," American Economic Review, American Economic Association, vol. 92(4), pages 1116-1125, September. [Downloadable!] (restricted)
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  7. Plotnick, Robert, 1982. "The concept and measurement of horizontal inequity," Journal of Public Economics, Elsevier, vol. 17(3), pages 373-391, April. [Downloadable!] (restricted)
  8. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January. [Downloadable!] (restricted)
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  9. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November. [Downloadable!] (restricted)
  10. Stephen P. Jenkins & Philippe Van Kerm, 2006. "Trends in income inequality, pro-poor income growth, and income mobility," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 531-548, July. [Downloadable!] (restricted)
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  11. Lichtenberg, Frank R, 1994. "Testing the Convergence Hypothesis," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 576-79, August. [Downloadable!] (restricted)
  12. Javier Herrera & François Roubaud, 2003. "Dynamique de la pauvreté urbaine au Pérou et à Madagascar 1997-1999: une analyse sur données de panel," Working Papers DT/2003/03, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
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  13. Stephen Jenkins & Peter Lambert, . "Horizontal Inequity Measurement: A Basic Reassessment," Discussion Papers 96/21, Department of Economics, University of York.
  14. Jean-Yves Duclos & Quentin Wodon, 2004. "What is "Pro-Poor"?," Cahiers de recherche 0425, CIRPEE. [Downloadable!]
  15. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  16. Gary Fields & Paul Cichello & Samuel Freije & Marta Menéndez & David Newhouse, 2003. "For Richer or for Poorer? Evidence from Indonesia, South Africa, Spain, and Venezuela," Journal of Economic Inequality, Springer, vol. 1(1), pages 67-99, April. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Melanie Grosse & Kenneth Harttgen & Stephan Klasen, 2006. "Measuring Pro-Poor Progress towards the Non-Income Millennium Development Goals," Ibero America Institute for Econ. Research (IAI) Discussion Papers 144, Ibero-America Institute for Economic Research. [Downloadable!]
  2. Günther, Isabel & Klasen, Stephan, 2007. "Measuring Chronic Non-Income Poverty," Proceedings of the German Development Economics Conference, Göttingen 2007 10, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
  3. Jean-Pierre Lachaud, 2006. "La croissance pro-pauvres au Burkina Faso. L’éviction partielle de l’axiome d’anonymat en présence de données transversales," Documents de travail 126, Centre d'Economie du Développement de l'Université Montesquieu Bordeaux IV. [Downloadable!]
  4. Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Working Papers DT/2007/12, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
    Other versions:
  5. Jean-Yves Duclos, 2006. "Equity and Equality," IZA Discussion Papers 2284, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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