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Poverty in Ireland, 1987-1994 - A Stochastic Dominance Approach

  • David Madden

    (University College Dublin)

  • Fiona Smith

Poverty dominance analysis uses stochastic dominance to provide rankings of distributions in terms of poverty which are not sensitive to the choice of poverty line. This analysis is carried out for Ireland using Household Budget Survey data for 1987 and 1994 including tests for the statistical significance of the results. We find that for a wide range of absolute poverty lines, poverty in Ireland fell over the 1987-1994 period. When relative poverty lines are used, second-order dominance for 1987 over 1994 is found for the case of expenditure and third-order dominance for 1994 over 1987 for the case of income.

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File Function: First version, 2000
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 31 (2000)
Issue (Month): 3 ()
Pages: 187-214

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Handle: RePEc:eso:journl:v:31:y:2000:i:3:p:187-214
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  1. Richard Blundell & Ian Preston, 1997. "Consumption, inequality and income uncertainty," IFS Working Papers W97/15, Institute for Fiscal Studies.
  2. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
  3. Madden, David, 2000. "Relative or Absolute Poverty Lines: A New Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 181-99, June.
  4. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  5. Ferreira, Francisco H. G. & Litchfield, Julie A., 1998. "Calm after the storms : income distribution in Chile, 1987-94," Policy Research Working Paper Series 1960, The World Bank.
  6. Miles S. Kimball, 1989. "Precautionary Saving in the Small and in the Large," NBER Working Papers 2848, National Bureau of Economic Research, Inc.
  7. Donal O'Neill & Olive Sweetman, 1999. "Poverty and Inequality in Ireland: A Comparison using Measures of Income and Consumption," Economics, Finance and Accounting Department Working Paper Series n860399, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  8. 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 317-27, July.
  9. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  10. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
  11. Susan Dynarski & Jonathan Gruber, 1997. "Can Families Smooth Variable Earnings?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 229-303.
  12. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
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