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Macroeconomic crises and poverty monitoring

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  • Datt, Gaurav
  • Ravallion, Martin

Abstract

Assessment of the welfare impacts of low-frequency events, such as macroeconomic crises and stabilizations, are often confounded by sampling and nonsampling errors that generate fluctuations in household survey-based welfare indicators; they are also limited by our ability to explain fluctuations in terms of other available data. Basing policy on short-term movements in welfare indicators can thus be hazardous. There was a sharp increase in India's poverty measures in the aftermath of the mid-1991 crisis and the ensuing stabilization reforms. However, only one-tenth of the increase in measured poverty is explicable in terms of the variables one would expect to transmit the shock. Poverty measures soon returned to their pre-reform levels, belying the notion of a reforms-induced structural break.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 20.

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Date of creation: 1996
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Handle: RePEc:fpr:fcnddp:20

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Keywords: Poverty ; Welfare economics. ; Macroeconomics. ; FCND ;

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References

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  1. Datt, Gaurav & Ravallion, Martin, 1998. "Why Have Some Indian States Done Better Than Others at Reducing Rural Poverty?," Economica, London School of Economics and Political Science, vol. 65(257), pages 17-38, February.
  2. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, vol. 10(1), pages 1-25, January.
  3. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  4. Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Development Research Unit Working Paper Series archive-41, Monash University, Department of Economics.
  5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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Cited by:
  1. Jha,R., 2000. "Reducing Poverty and Inequality in India: Has Liberalization Helped?," Research Paper 204, World Institute for Development Economics Research.
  2. Sudip Ranjan Basu, 2005. "Economic Growth, Well-Being and Governance under Economic Reforms: Evidence from Indian States," Development and Comp Systems 0509007, EconWPA.
  3. Hazell, Peter B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction," 2020 vision briefs 70, International Food Policy Research Institute (IFPRI).
  4. Datt, Gaurav & Ravallion, Martin, 1998. "Farm productivity and rural poverty in India," FCND discussion papers 42, International Food Policy Research Institute (IFPRI).
  5. Datt, Gaurav, 1998. "Poverty in India and Indian states," FCND discussion papers 47, International Food Policy Research Institute (IFPRI).
  6. T. Krishna Kumar & Sushanta Mallick & Jayarama Holla, 2007. "Estimating Consumption Deprivation in India using Survey Data: A State-Level Rural-Urban Analysis before and during Reform Period," Working Papers 7, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
  7. Quibria, M.G., 2002. "Growth and Poverty: Lessons from the East Asian Miracle Revisited," MPRA Paper 2638, University Library of Munich, Germany.
  8. World Bank, 2007. "Ethiopia - Accelerating Equitable Growth : Country Economic Memorandum, Part 2. Thematic Chapters," World Bank Other Operational Studies 7866, The World Bank.
  9. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
  10. Surajit Deb, 2002. "The Debate on Agriculture-Industry Terms of Trade in India," Working papers 109, Centre for Development Economics, Delhi School of Economics.
  11. Raghbendra Jha, 2006. "Vulnerability of Consumption Growth in Rural India," ASARC Working Papers 2006-04, The Australian National University, Australia South Asia Research Centre.
  12. Raghbendra Jha, 2002. "Rural Poverty in India: Structure, determinants and suggestions for policy reform," ASARC Working Papers 2002-07, The Australian National University, Australia South Asia Research Centre.
  13. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
  14. Sumon Kumar Bhaumik & Manisha Chakrabarty, 2006. "Earnings Inequality in India: Has the Rise of Caste and Religion Based Politics in India had an Impact?," William Davidson Institute Working Papers Series 819, William Davidson Institute at the University of Michigan.
  15. Gerald Epstein & Ilene Grabel, 2007. "Financial Policy," Publications 3, International Policy Centre for Inclusive Growth.

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