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Decomposing poverty changes into vertical and horizontal components

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  • Sami Bibi
  • Jean‐Yves Duclos

Abstract

Variations in aggregate poverty indices can be due to differences in average poverty intensity, to changes in the welfare distances between those poor of initially unequal welfare status and/or to emerging disparities in welfare among those poor of initially similar welfare status. This note uses a general cost‐of‐inequality approach that decomposes the total change in poverty into a sum of indices of each of these three components. This decomposition can serve inter alia to integrate horizontal and vertical equity criteria in the poverty alleviation assessment of social and economic programmes. The use of these measures is briefly illustrated using Tunisian data.

Suggested Citation

  • Sami Bibi & Jean‐Yves Duclos, 2005. "Decomposing poverty changes into vertical and horizontal components," Bulletin of Economic Research, Wiley Blackwell, vol. 57(2), pages 205-215, April.
    • Handle: RePEc:bla:buecrs:v:57:y:2005:i:2:p:205-215
    DOI: 10.1111/j.0307-3378.2005.00221.x
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    References listed on IDEAS

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    1. Jean-Yves Duclos & Peter Lambert, "undated". "A Normative Approach to Measuring Classical Horizontal Inequity," Discussion Papers 97/3, Department of Economics, University of York.
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    9. Bibi Sami, 2003. "On the Impact of Better Targeted Transfers on Poverty in Tunisia," Review of Middle East Economics and Finance, De Gruyter, vol. 1(1), pages 17-35, January.
    10. Jean‐Yves Duclos & Peter J. Lambert, 2000. "A normative and statistical approach to measuring classical horizontal inequity," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 33(1), pages 87-113, February.
    11. Musgrave, Richard A., 1990. "Horizontal Equity, Once More," National Tax Journal, National Tax Association, vol. 43(2), pages 113-22, June.
    12. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-327, July.
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    14. Musgrave, Richard A., 1990. "Horizontal Equity, Once More," National Tax Journal, National Tax Association;National Tax Journal, vol. 43(2), pages 113-122, June.
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    Cited by:

    1. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
    2. Hatem Jemmali, 2016. "Inequality of Opportunities among Tunisian Children over Time and Space," Working Papers 1048, Economic Research Forum, revised 09 Jan 2016.
    3. Hatem Jemmali, 2019. "Inequality of Opportunities among Tunisian Children over Time and Space," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 12(1), pages 213-234, February.
    4. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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