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Robust Multiperiod Poverty Comparisons

  • Johannes Gräb


    (University of Göttingen, Department of Economics)

  • Michael Grimm


    (Institute of Social Studies, The Hague, DIW and DIAL)

We propose a new methodology for comparing poverty over multiple periods across time and space that does not arbitrarily aggregate income over various years or rely on arbitrarily specified poverty lines or poverty indices. Following Duclos et al. (2006a), we use the multivariate stochastic dominance methodology to create dominance surfaces for different time spans. We elaborate the method first for the bidimensional case, using as dimensions income observed over two periods: one at the beginning and one at the end of a time span. Subsequently, we extend it to the case where incomes are observed over n-periods. We illustrate our approach by performing poverty comparisons using data for Indonesia and Peru. _________________________________ Nous proposons une nouvelle méthode pour la suivie de la pauvreté de multiples périodes dans le temps et dans l’espace. Cette méthode évite d’agréger arbitrairement les revenus au travers du temps ou de faire recours à des lignes de pauvreté ou des indicateurS de bien-être arbitraires. Suivant Duclos et al. (2006), nous utilisons la méthode de la dominance stochastique multivariée afin d’établir des surfaces de dominance pour des périodes différentes. D’abord nous élaborons la méthode pour le cas en deux dimensions, utilisant comme dimensions les revenus observés pour deux points dans le temps: un au début et un à la fin de la période. Successivement, nous élargissons la méthode pour le cas où les revenus sont observés pour n périodes. Nous illustrons notre approche en effectuant des comparaisons de pauvreté utilisant des données de l’Indonésie et du Pérou.

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Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2007/12.

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Length: 25 pages
Date of creation: Dec 2007
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Handle: RePEc:dia:wpaper:dt200712
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  1. Guillermo Cruces, 2005. "Income Fluctuation, Poverty and Well-Being Over Time: Theory and Application to Argentina," STICERD - Distributional Analysis Research Programme Papers 76, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  3. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
  4. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," Journal of Economic Inequality, Springer, vol. 5(2), pages 179-197, August.
  5. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 02-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  6. Jean-Yves Duclos & Abdelkrim Araar & John Giles, 2006. "Chronic and Transient Poverty: Measurement and Estimation, with Evidence from China," Cahiers de recherche 0611, CIRPEE.
  7. Philippe De Vreyer & Javier Herrera & Sandrine Mesplé-Somps, 2002. "Consumption growth and spatial poverty traps: an analysis of the effects of social services and community infrastructures on living standards in rural Peru," Working Papers DT/2002/17, DIAL (Développement, Institutions et Mondialisation), revised Oct 2003.
  8. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," World Bank Economic Review, World Bank Group, vol. 20(1), pages 91-113.
  9. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
  10. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  12. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
  13. Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
  14. Richard Breen & Pasi Moisio, 2004. "Poverty dynamics corrected for measurement error," Journal of Economic Inequality, Springer, vol. 2(3), pages 171-191, July.
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