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Inflation Inequality and the Measurement of Pro-Poor Growth

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Author Info
Michael Grimm () (University of Göttingen, Department of Economics, DIW and DIAL)
Isabel Günther () (University of Göttingen, Department of Economics)

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Abstract

The theoretical literature on pro-poor growth as well as its applications have not paid sufficient attention to the issue of varying inflation rates across the income distribution. Ignoring inflation inequality in pro-poor growth measurements can however severely bias assessments of pro-poor growth. Hence, we suggest simple methods which are able to redress such biases. As an empirical illustration we use the case of Burkina Faso and the growth incidence curve and poverty change decompositions as pro-poor growth measurements. _________________________________ La littérature théorique sur la croissance en faveur des pauvres ainsi que ses applications n'ont jusqu'à présent pas accordé suffisamment d'attention à l'aspect des variations des taux d'inflation au travers de la distribution des revenus. Ignorant l'inégalité de l'inflation dans les mesures de la croissance en faveur des pauvres peut cependant significativement biaiser l'analyse. Nous suggérons des méthodes appropriées simples pour redresser ce biais. Pour une illustration empirique, nous utilisons le cas du Burkina Faso ainsi que la courbe d'incidence de croissance et des décompositions des changements de pauvreté comme mesures de la croissance en faveur des pauvres.

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Publisher Info
Paper provided by DIAL (Développement, Institutions & Analyses de Long terme) in its series Working Papers with number DT/2005/08.

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Length: 22 pages
Date of creation: Jul 2005
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Handle: RePEc:dia:wpaper:dt200508

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Related research
Keywords: Poverty Pro-poor Growth Differential Inflation Burkina Faso Pauvreté Croissance en faveur des pauvres Inflation différentielle.

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Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

References listed on IDEAS
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  1. Jantti, Markus & Danziger, Sheldon, 2000. "Income poverty in advanced countries," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 6, pages 309-378 Elsevier. [Downloadable!] (restricted)
  2. Kilpatrick, Robert W, 1973. "The Income Elasticity of the Poverty Line," The Review of Economics and Statistics, MIT Press, vol. 55(3), pages 327-32, August. [Downloadable!] (restricted)
  3. Bart Hobijn & David Lagakos, 2003. "Inflation inequality in the United States," Staff Reports 173, Federal Reserve Bank of New York. [Downloadable!]
  4. Mohamed Ali Marouani & Marc Raffinot, 2004. "Perspectives on growth and poverty reduction in Mali," Working Papers DT/2004/05, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
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