Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data
Although many studies addressed poverty issues, very few of then did analyze the transient or persistent nature of this phenomenon. Encouraged by this lack of dynamic poverty analyses, the objective of this paper is to evaluate which features determine the relative position and the dynamics of the destitution state of the individual. Due to the scarcity of panel surveys in Brazil, it was used a pseudo-panel obtained from the Pesquisa Nacional por Amostra de Domicílios (PNAD/IBGE) database in this study. With these data, the state permanence and the state transience probabilities were estimated in a Markov matrix with the application of a bivariate probit model with endogenous switching for grouped data. It was chosen as the welfare indicator the per capita household income, which was analyzed in relation to a relative poverty line. Moreover, in order to verify the sensibility of the parameters estimated in the econometric analysis, distinct poverty lines were used and also different assumptions of household scale economies and of intrahousehold relative costs were made. The transient-chronic analysis is based on the distinction between stationary and transient components of intertemporal propensity to poverty. The results enabled to identify which groups in the population were especially sensitive to the chronic and to the transient types of poverty.
|Date of creation:||May 2006|
|Date of revision:|
|Contact details of provider:|| Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil|
Fax: +55 31 3201-3657
Web page: http://www.cedeplar.ufmg.br
More information through EDIRC
|Order Information:|| Postal: Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nicoletti, Cheti, 2003.
"Poverty analysis with unit and item nonresponses: alternative estimators compared,"
ISER Working Paper Series
2003-20, Institute for Social and Economic Research.
- Cheti Nicoletti, 2004. "Poverty Analysis With Unit And Item Non-Responses: Alternative Estimators Compared," Royal Economic Society Annual Conference 2004 120, Royal Economic Society.
- Verbeek, Marno & Nijman, Theo, 1992.
"Can Cohort Data Be Treated as Genuine Panel Data?,"
Springer, vol. 17(1), pages 9-23.
- Verbeek, M.J.C.M. & Nijman, T.E., 1990. "Can cohort data be treated as genuine panel data?," Discussion Paper 1990-64, Tilburg University, Center for Economic Research.
- Verbeek, M. & Nijman, T., 1990. "Can Cohort Data Be Treated As Genuine Panel Data," Papers 9064, Tilburg - Center for Economic Research.
- Sahn, David E. & Stifel, David C., 2000. "Poverty Comparisons Over Time and Across Countries in Africa," World Development, Elsevier, vol. 28(12), pages 2123-2155, December.
- Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
- Cappellari, Lorenzo & Jenkins, Stephen P., 2002.
"Modelling low income transitions,"
ISER Working Paper Series
2002-08, Institute for Social and Economic Research.
- Lorenzo Cappellari & Stephen P. Jenkins, 2002. "Modelling Low Income Transitions," Discussion Papers of DIW Berlin 288, DIW Berlin, German Institute for Economic Research.
- Cappellari, Lorenzo & Jenkins, Stephen P., 2002. "Modelling Low Income Transitions," IZA Discussion Papers 504, Institute for the Study of Labor (IZA).
- Bird, Kate & Shepherd, Andrew, 2003. "Livelihoods and Chronic Poverty in Semi-Arid Zimbabwe," World Development, Elsevier, vol. 31(3), pages 591-610, March.
- Anna Giraldo & Enrico Rettore & Ugo Trivellato, 2002. "The persistence of poverty: true state dependence or unobserved heterogeneity? Some evidence from the Italian Survey on Household Income and Wealth," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B2-1, International Conferences on Panel Data.
- Goodhand, Jonathan, 2003. "Enduring Disorder and Persistent Poverty: A Review of the Linkages Between War and Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 629-646, March.
- Muellbauer, John, 1977. "Testing the Barten Model of Household Composition Effects and the Cost of Children," Economic Journal, Royal Economic Society, vol. 87(347), pages 460-87, September.
- Kapur Mehta, Aasha & Shah, Amita, 2003. "Chronic Poverty in India: Incidence, Causes and Policies," World Development, Elsevier, vol. 31(3), pages 491-511, March.
- Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
- Francisco H.G. Ferreira & Peter Lanjouw & Marcelo Neri, 2001.
"A New Poverty Profile For Brazil Using PPV, PNAD And Census Data,"
Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting]
100, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Francisco de Hollanda Guimarães Ferreira & Peter Lanjouw & Marcelo Neri, 2000. "A new poverty profile for Brazil using PPV, PNAD and census data," Textos para discussão 418, Department of Economics PUC-Rio (Brazil).
- Ravallion, Martin, 1988. "Expected Poverty under Risk-Induced Welfare Variability," Economic Journal, Royal Economic Society, vol. 98(393), pages 1171-82, December.
- Sen, Binayak, 2003. "Drivers of Escape and Descent: Changing Household Fortunes in Rural Bangladesh," World Development, Elsevier, vol. 31(3), pages 513-534, March.
- Lorenzo Cappellari & Stephen P. Jemkins, 2002. "Who Stays Poor? Who Becomes Poor? Evidence from the British Household Panel Survey," Economic Journal, Royal Economic Society, vol. 112(478), pages C60-C67, March.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Barrientos, Armando & Gorman, Mark & Heslop, Amanda, 2003. "Old Age Poverty in Developing Countries: Contributions and Dependence in Later Life," World Development, Elsevier, vol. 31(3), pages 555-570, March.
- Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
- Bourguignon, Francois & Goh, Chor-ching & Kim, Dae Il, 2004. "Estimating individual vulnerability to poverty with pseudo-panel data," Policy Research Working Paper Series 3375, The World Bank.
- Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
- Stewart, M.B. & Swaffield, J.K., 1997.
"Low Pay Dynamics and Transition Probabilities,"
The Warwick Economics Research Paper Series (TWERPS)
495, University of Warwick, Department of Economics.
- Arulampalam, Wiji & Booth, Alison L & Taylor, Mark P, 2000. "Unemployment Persistence," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 24-50, January.
- Harper, Caroline & Marcus, Rachel & Moore, Karen, 2003. "Enduring Poverty and the Conditions of Childhood: Lifecourse and Intergenerational Poverty Transmissions," World Development, Elsevier, vol. 31(3), pages 535-554, March.
- Galloway, Taryn Ann, 2004.
"To What Extent Is a Transition into Employment Associated with an Exit from Poverty?,"
01/2004, Oslo University, Department of Economics.
- Taryn Ann Galloway, 2004. "To What Extent Is a Transition into Employment Associated with an Exit from Poverty," Discussion Papers 382, Statistics Norway, Research Department.
- Pritchett, Lant & Suryahadi, Asep & Sumarto, Sudarno, 2000. "Quantifying vulnerability to poverty - a proposed measure, applied to Indonesia," Policy Research Working Paper Series 2437, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:cdp:texdis:td290. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gustavo Britto)
If references are entirely missing, you can add them using this form.