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The estimation of the growth and redistribution components of changes in poverty: a reassessment

  • Florent Bresson

    ()

    (Cemagref)

What are the respective contributions of growth and inequality changes to observed poverty variations? Many studies have attempted to provide some empirical evidence to answer this question using case studies with decompositions of observed poverty spells. Most of them rely on two decomposition frameworks suggested by Datt & Ravallion (1992) on the one hand, and Shorrocks (1999) and Kakwani (2000) on the other hand. However, despite their properties, these techniques are not appropriate for such an accounting exercise. Here, following Muller (2006), we propose an alternative decomposition procedure that is consistent with definitions of growth and inequality effects stemming from time-integral calculus. Contrary to the aforementioned methods, the proposed technique simultaneously fits the observed pattern of income distributions changes and does not produce large residual components.

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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 9 (2008)
Issue (Month): 14 ()
Pages: 1-7

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Handle: RePEc:ebl:ecbull:eb-08i30023
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  1. Kai-yuen Tsui, 1996. "Growth-equity decomposition of a change in poverty: An axiomatic approach," Economics Letters, Elsevier, vol. 50(3), pages 417-423, March.
  2. Florent Bresson & Kelly Labar, 2007. "“Leftist”, “Rightist” and Intermediate Decompositions of Poverty: Variations with an Application to China from 1990 to 2003," Working Papers 76, ECINEQ, Society for the Study of Economic Inequality.
  3. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  4. Zhang, Yin & Wan, Guanghua, 2006. "The Impacts of Growth and Inequality on Rural Poverty in China," Working Paper Series RP2006/94, World Institute for Development Economic Research (UNU-WIDER).
  5. Muller, Adrian, 2006. "Clarifying Poverty Decomposition," Working Papers in Economics 217, University of Gothenburg, Department of Economics, revised 17 Nov 2008.
  6. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
  7. Amiel, Yoram & Cowell, Frank A., 1992. "Measurement of income inequality : Experimental test by questionnaire," Journal of Public Economics, Elsevier, vol. 47(1), pages 3-26, February.
  8. Hyun Son, 2003. "A New Poverty Decomposition," Journal of Economic Inequality, Springer, vol. 1(2), pages 181-187, August.
  9. Shatakshee Dhongde, 2007. "Measuring the Impact of Growth and Income Distribution on Poverty in India," Journal of Income Distribution, Journal of Income Distribution, vol. 16(2), pages 25-48, June.
  10. Francis Menjo Baye, 2006. "Growth, Redistribution and Poverty Changes in Cameroon: A Shapley Decomposition Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(4), pages 543-570, December.
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