Calculating Poverty Measures from the Generalized Beta Income Distribution
AbstractData for measuring poverty and income inequality are frequently available in a summary form that describes the proportion of income or expenditure for each of a number of population proportions. While various discrete measures can be applied directly to data in this limited form, these discrete measures typically ignore inequality within each group. This problem can be overcome by fitting a parametric income distribution to the grouped data and computing required quantities from the estimated parameters of this distribution. In this paper we show how to calculate several poverty measures from parameters of the generalized beta distribution of the second kind, and its popular special cases. An analysis of poverty changes in ten countries from South and Southeast Asia is used to illustrate the methodology.
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Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 1154.
Length: 32 pages
Date of creation: 2012
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Find related papers by JEL classification:
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-09 (All new papers)
- NEP-DEM-2012-09-09 (Demographic Economics)
- NEP-ECM-2012-09-09 (Econometrics)
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