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Robust Multiperiod Poverty Comparisons

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Author Info
Johannes Gräb
Michael Grimm

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Abstract

We propose a new methodology for comparing poverty over multiple periods across time and space that does not arbitrarily aggregate income over various years or rely on arbitrarily specified poverty lines or poverty indices. Following Duclos et al. (2006a), we use the multivariate stochastic dominance methodology to create dominance surfaces for different time spans. We elaborate the method first for the bidimensional case, using as dimensions income observed over two periods: one at the beginning and one at the end of a time span. Subsequently, we extend it to the case where incomes are observed over n-periods. We illustrate our approach by performing poverty comparisons using data for Indonesia and Peru.

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Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 725.

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Length: 23 p.
Date of creation: 2007
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Handle: RePEc:diw:diwwpp:dp725

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Related research
Keywords: Multiperiod Poverty; Poverty Dominance; Poverty Dynamics; Chronic Poverty;

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  1. repec:dia:wpaper:dt200217 is not listed on IDEAS
  2. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March. [Downloadable!] (restricted)
  3. Bossert, Walter & D'Ambrosio, Conchita & Peragine, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ. [Downloadable!]
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  4. François Bourguignon & Satya R. Chakravarty, 2002. "Multi-dimensional poverty orderings," DELTA Working Papers 2002-22, DELTA (Ecole normale supérieure). [Downloadable!]
  5. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier. [Downloadable!] (restricted)
  6. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April. [Downloadable!] (restricted)
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  7. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January. [Downloadable!] (restricted)
  8. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," World Bank Economic Review, Oxford University Press, vol. 20(1), pages 91-113.
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  9. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August. [Downloadable!] (restricted)
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  10. Guillermo Cruces, 2005. "Income Fluctuations, Poverty and Well-Being Over Time: Theory and Application to Argentina," Labor and Demography 0502007, EconWPA. [Downloadable!]
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  11. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October. [Downloadable!] (restricted)
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  12. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June. [Downloadable!] (restricted)
  13. 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)
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Cited by:
(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. Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers 0814, University of Guelph, Department of Economics. [Downloadable!]
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