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Role of Growth and Distribution in the Observed Change in Headcount Ratio Measure of Poverty: A Decomposition Exercise for India

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  • L. R. Jain

    (Indian Statistical Institute, New Delhi)

  • Suresh D. Tendulkar

    (Delhi School of Economics)

Abstract

This paper presents a method and analysis the results of decomposing the change in headcount ratio measure of poverty (CHR) between 1970-71 and 1983, separately for rural and urban population of 20 states, into two additive components, viz., one attributable to growth in real average per capita total expenditure (APCTE) (growth effect) and the other to a change in the relative size distribution of PCTE (distribution effect). Based on regression analysis an attempt is also made to explain inter-state variations in CHR with the help of growth in real APCTE and base-year headcount ratio and relate the residual from the regression equation to the distribution effect.

Suggested Citation

  • L. R. Jain & Suresh D. Tendulkar, 1990. "Role of Growth and Distribution in the Observed Change in Headcount Ratio Measure of Poverty: A Decomposition Exercise for India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 25(2), pages 165-205, July.
  • Handle: RePEc:dse:indecr:v:25:y:1990:i:2:p:165-205
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    Cited by:

    1. Ivica Rubil, 2013. "Accounting for Regional Poverty Differences in Croatia: Exploring the Role of Disparities in Average Income and Inequality," Working Papers 1301, The Institute of Economics, Zagreb.
    2. Zhang, Yin & Wan, Guanghua, 2006. "The impact of growth and inequality on rural poverty in China," Journal of Comparative Economics, Elsevier, pages 694-712.
    3. Bhanumurthy, N.R. & Mitra, Arup, 2006. "Globalization, Growth and Poverty in India," WIDER Working Paper Series 041, World Institute for Development Economic Research (UNU-WIDER).
    4. K.K. Subramanian & Syam Prasad, 2008. "Rising inequality with high growth isn't this trend worrisome? Analysis of Kerala experience," Centre for Development Studies, Trivendrum Working Papers 401, Centre for Development Studies, Trivendrum, India.
    5. Samuel Fambon, 2005. "Croissance économique, pauvreté et inégalité des revenus au Cameroun," Revue d’économie du développement, De Boeck Université, vol. 13(1), pages 91-122.
    6. Wang, Chen & Wan, Guanghua, 2015. "Income polarization in China: Trends and changes," China Economic Review, Elsevier, vol. 36(C), pages 58-72.
    7. Sahoo, Priyabrata, 2015. "Dynamics of Rural Poverty in Odisha," MPRA Paper 75520, University Library of Munich, Germany.
    8. repec:eee:wdevel:v:100:y:2017:i:c:p:69-84 is not listed on IDEAS
    9. Fan, Shenggen & Hazell, P. B. R. & Thorat, Sukhadeo, 1999. "Linkages between government spending, growth, and poverty in rural India:," Research reports 110, International Food Policy Research Institute (IFPRI).
    10. Fujii, Tomoki, 2017. "Dynamic Poverty Decomposition Analysis: An Application to the Philippines," World Development, Elsevier, vol. 100(C), pages 69-84.
    11. Tomoki Fujii, 2015. "Poverty decomposition by regression," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    12. Sahoo, A., 2008. "Essays on the Indian economy : Competitive pressure, productivity and performance," Other publications TiSEM 374e9035-815c-43fe-a68e-e, Tilburg University, School of Economics and Management.
    13. Wan, Guanghua, 2006. "Poverty Accounting by Factor Components: With an Empirical Illustration Using Chinese Data," WIDER Working Paper Series 063, World Institute for Development Economic Research (UNU-WIDER).
    14. Wang, Jinxian & Caminada, Koen & Goudswaard, Kees & Wang, Chen, 2015. "Decomposing income polarization and tax-benefit changes across 31 European countries and Europe wide, 2004-2012," MPRA Paper 66155, University Library of Munich, Germany.
    15. Zhang, Yin & Wan, Guanghua, 2006. "Poverty Reduction in China: Trends and Causes," WIDER Working Paper Series 152, World Institute for Development Economic Research (UNU-WIDER).

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