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Macroeconomic Crises and Poverty Monitoring: A Case Study for India

  • Datt, Gaurav
  • Ravallion, Martin

Survey-based welfare indicators can fluctuate over time in ways which have little to do with macroeconomic changes in the economy. So basing policy decisions on short-term movements in such welfare indicators can be hazardous. There was a sharp increase in India's poverty measures in the aftermath of the mid-1991 crisis and the ensuing stabilization program. However, only one-tenth of the increase in measured poverty is explicable in terms of the variables one would expect to transmit the shock to poor people. Poverty measures soon returned to their pre-reform levels, belying the notion of a structural break induced by reforms. Copyright 1997 by Blackwell Publishing Ltd

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Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 1 (1997)
Issue (Month): 2 (June)
Pages: 135-52

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Handle: RePEc:bla:rdevec:v:1:y:1997:i:2:p:135-52
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  1. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  2. Datt, Gaurav & Ravallion, Martin, 1996. "Why have some Indian states done better than others at reducing rural poverty?," Policy Research Working Paper Series 1594, The World Bank.
  3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  4. Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Monash Economics Working Papers archive-41, Monash University, Department of Economics.
  5. 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.
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