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The effect of robust growth on poverty: a nonlinear analysis

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  • Walter Enders
  • Gary Hoover

Abstract

Previous research has shown that economic growth should help to reduce the rate of poverty. However, a number of recent studies have found that the economic expansion of the 1980s had no statistically significant effect on aggregate poverty. It is shown that both a Threshold regression and a Fourier approximation provide a better empirical model of poverty than the standard linear model. It is noteworthy that the nonlinear specifications show a large and significant effect on poverty of the 1980s expansion.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 35 (2003)
Issue (Month): 9 ()
Pages: 1063-1071

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Handle: RePEc:taf:applec:v:35:y:2003:i:9:p:1063-1071

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  1. Donald W.K. Andrews & Inpyo Lee & Werner Ploberger, 1992. "Optimal Changepoint Tests for Normal Linear Regression," Cowles Foundation Discussion Papers 1016, Cowles Foundation for Research in Economics, Yale University.
  2. Ludlow, Jorge & Enders, Walter, 2000. "Estimating non-linear ARMA models using Fourier coefficients," International Journal of Forecasting, Elsevier, vol. 16(3), pages 333-347.
  3. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
  4. Robert B. Davies, 2002. "Hypothesis testing when a nuisance parameter is present only under the alternative: Linear model case," Biometrika, Biometrika Trust, vol. 89(2), pages 484-489, June.
  5. Rebecca M. Blank, 1999. "What Goes Up Must Come Down? Explaining Recent Changes in Public Assistance Caseloads," JCPR Working Papers 78, Northwestern University/University of Chicago Joint Center for Poverty Research.
  6. Thornton, James R & Agnello, Richard J & Link, Charles R, 1978. "Poverty and Economic Growth: Trickle Down Peters Out," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 385-94, July.
  7. Hirsch, Barry T, 1980. "Poverty and Economic Growth: Has Trickle Down Petered Out?," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 151-58, January.
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Cited by:
  1. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
  2. Tebaldi, Edinaldo & Mohan, Ramesh, 2008. "Poverty, Geography and Institutional Path Dependence," MPRA Paper 10201, University Library of Munich, Germany.
  3. Tregenna, Fiona, 2011. "Halving Poverty in South Africa: Growth and Distributional Aspects," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  4. Lonnie K. Stevans & David N. Sessions, 2005. "The Relationship Between Poverty, Economic Growth, and Inequality Revisited," GE, Growth, Math methods 0502002, EconWPA.
  5. Dierk Herzer & Rainer Klump, 2006. "Poverty, Government Transfers, and the Business Cycle: Evidence for the United States," Ibero America Institute for Econ. Research (IAI) Discussion Papers 141, Ibero-America Institute for Economic Research.

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