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Macroeconomic Fundamentals of Poverty and Deprivation: An Empirical Study for Developed Countries

Author

Listed:
  • Ana Paula Ribeiro

    (Universidade do Porto, Porto, Portugal)

  • Sandra Tavares Silva

    (Universidade do Porto, Porto, Portugal)

  • Duarte Guimarães

    (Universidade do Porto, Porto, Portugal)

Abstract

This study provides a relevant contribution to literature on the macroeconomic determinants of multidimensional deprivation in developed countries; this type of analysis is not as frequent in the literature as that explaining poverty stricto sensu. After a review of the macroeconomic mechanisms of poverty, we propose a composite index to capture multidimensional poverty as to allow a comparative assessment of deprivation across European Union countries. Relying on the macroeconomic transmission mechanisms that influence poverty, a panel data econometric approach is implemented to study the relation between the proposed composite index and macroeconomic variables. Results show that a multidimensional poverty concept is relevant for assessing deprivation in Europe and that the dynamics of main macroeconomic variables crucially affect deprivation performances. The latter result is robust, holding for different poverty measures.

Suggested Citation

  • Ana Paula Ribeiro & Sandra Tavares Silva & Duarte Guimarães, 2015. "Macroeconomic Fundamentals of Poverty and Deprivation: An Empirical Study for Developed Countries," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(1), pages 37-66, January.
    • Handle: RePEc:pal:eurjdr:v:27:y:2015:i:1:p:37-66
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    Cited by:

    1. Andreea Stoian & Rui Henrique Alves, 2012. "Can EU high indebted countries manage to fulfill fiscal sustainability? Some evidence from the solvency constraint," FEP Working Papers 464, Universidade do Porto, Faculdade de Economia do Porto.
    2. Isaac Doku, 2022. "Are Developing Countries Using Climate Funds for Poverty Alleviation? Evidence from Sub-Saharan Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 3026-3049, December.
    3. Ricardo Biscaia & Paula Sarmento, 2012. "Cost inefficiency and Optimal Market Structure in Spatial Cournot Discrimination," FEP Working Papers 462, Universidade do Porto, Faculdade de Economia do Porto.
    4. João Correia-da-Silva & Joana Pinho, 2012. "The profit-sharing rule that maximizes sustainability of cartel agreements," FEP Working Papers 463, Universidade do Porto, Faculdade de Economia do Porto.
    5. Abel L. Costa Fernandes & Paulo R. Mota, 2012. "Triffin’s Dilemma Again and the Efficient Level of U.S. Government Debt," FEP Working Papers 469, Universidade do Porto, Faculdade de Economia do Porto.
    6. Netta Achdut & Lea Achdut, 2022. "Joint Income-Wealth Poverty in a Cross-National Perspective: The Role of Country-Level Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 499-541, November.
    7. Pedro Cosme Costa Vieira, 2012. "A low cost supercritical Nuclear + Coal 3.0 Gwe power plant," FEP Working Papers 461, Universidade do Porto, Faculdade de Economia do Porto.

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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