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“Leftist”, “Rightist” and Intermediate Decompositions of Poverty Variations with an Application to China from 1990 to 2003

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  • Kelly LABAR

    ()

  • Florent BRESSON

    () (Université d'Auvergne(UdA))

Abstract

This paper investigates the influence of invariance axioms in the decomposition of observed poverty variations into growth and inequality effects. After a complete and critical review of the invariance axioms suggested in the literature, we show that few information is needed for the ordering of the effects respectively obtained through scale, translation and intermediate invariance. Using Chinese data for the period 1990-2003, we find that some commonly observed results of the decomposition are contingent to the invariance axiom choices whilst other are robust to changes in ethical preferences.

Suggested Citation

  • Kelly LABAR & Florent BRESSON, 2007. "“Leftist”, “Rightist” and Intermediate Decompositions of Poverty Variations with an Application to China from 1990 to 2003," Working Papers 200727, CERDI.
  • Handle: RePEc:cdi:wpaper:928
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    References listed on IDEAS

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    1. Claudio Zoli, 2012. "Characterizing Inequality Equivalence Criteria," Working Papers 32/2012, University of Verona, Department of Economics.
    2. Buhong Zheng, 2007. "Inequality orderings and unit consistency," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 29(3), pages 515-538, October.
    3. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
    4. Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-169, July.
    5. Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 427-466, September.
    6. Buhong Zheng, 2007. "Unit-Consistent Decomposable Inequality Measures," Economica, London School of Economics and Political Science, vol. 74(293), pages 97-111, February.
    7. Shorrocks, Anthony F, 1983. "Ranking Income Distributions," Economica, London School of Economics and Political Science, vol. 50(197), pages 3-17, February.
    8. Zhang, Yin & Wan, Guanghua, 2006. "The impact of growth and inequality on rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 694-712, December.
    9. Tateo Yoshida, 2005. "Social welfare rankings of income distributions A new parametric concept of intermediate inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(3), pages 557-574, June.
    10. Buhong Zheng, 2007. "Unit-Consistent Poverty Indices," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(1), pages 113-142, April.
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    Citations

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    Cited by:

    1. Florent Bresson, 2008. "The estimation of the growth and redistribution components of changes in poverty: a reassessment," Economics Bulletin, AccessEcon, vol. 9(14), pages 1-7.
    2. Rubil, Ivica, 2013. "Accounting for regional poverty differences in Croatia: Exploring the role of disparities in average income and inequality," MPRA Paper 43827, University Library of Munich, Germany.

    More about this item

    Keywords

    Poverty; Inequality effect; Growth effect; Decomposition; Scale invariance; Translationinvariance; Intermediate invariance; China;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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