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Revisiting the Effects of IMF Programs on Poverty and Inequality

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  • Doris A. Oberdabernig

    ()
    (Department of Economics, Vienna University of Economics and Business)

Abstract

Investigating how lending programs of the International Monetary Fund (IMF) affect poverty and inequality, we explicitly address model uncertainty. We control for endogenous selection into IMF programs using data on 86 low- and middle income countries for the 1982-2009 period and analyze program effects on various poverty and inequality measures. The results rely on averaging over 90 specifications of treatment effect models and indicate adverse short-run effects of IMF agreements on poverty and inequality for the whole sample, while for a 2000-2009 subsample the results are reversed. There is evidence that significant short-run effects might disappear in the long-run.

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Paper provided by Vienna University of Economics, Department of Economics in its series Department of Economics Working Papers with number wuwp144.

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Date of creation: Aug 2012
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Handle: RePEc:wiw:wiwwuw:wuwp144

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Keywords: Poverty and income distribution; IMF lending programs; model uncertainty; treatment effects; cross-country analysis; developing countries;

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Cited by:
  1. Christian Mumssen & Yasemin Bal-Gunduz & Christian Ebeke & Linda Kaltani, 2013. "IMF-Supported Programs in Low Income Countries: Economic Impact over the Short and Longer Term," IMF Working Papers 13/273, International Monetary Fund.

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