An African Growth Miracle? Or: What do Asset Indices Tell Us about Trends in Economic Performance?
Using changes in the possession of household assets over the past 20 years, several recent papers have argued that economic performance in Arica was substantially better than suggested by national income data and income poverty statistics, who suffer from well-known weaknesses. We scrutinize these claims and first argue that trends in assets provide biased proxies for trends in incomes or consumption. In particular we show that the relationship between growth in assets and growth in incomes or consumption is extremely weak; instead, we find evidence of asset drift using macro and micro data, which is consistent with the claims we make about possible biases in the use of asset indices. As a result, we find no evidence supporting the claim of an African growth miracle that extends beyond what has been reported in GDP/capita and consumption figures.
|Date of creation:||16 Feb 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Platz der Goettinger Sieben 3; D-37073 Goettingen, GERMANY|
Phone: +49 551 39 14066
Fax: + 49 551 39 14059
Web page: http://www.uni-goettingen.de/en/82144.html
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.:
- de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521898010, 1.
- Kenneth Harttgen & Stephan Klasen, 2010.
"A Household-Based Human Development Index,"
Human Development Research Papers (2009 to present)
HDRP-2010-22, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
- Harttgen, Kenneth & Klasen, Stephan, 2010. "A household-based Human Development Index," Proceedings of the German Development Economics Conference, Hannover 2010 30, Verein für Socialpolitik, Research Committee Development Economics.
- Stifel, David & Christiaensen, Luc, 2006.
"Tracking poverty over time in the absence of comparable consumption data,"
Policy Research Working Paper Series
3810, The World Bank.
- David Stifel & Luc Christiaensen, 2007. "Tracking Poverty Over Time in the Absence of Comparable Consumption Data," World Bank Economic Review, World Bank Group, vol. 21(2), pages 317-341, June.
- David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
- David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer, vol. 18(2), pages 229-260, 06.
- de la Grandville,Olivier, 2009. "Economic Growth," Cambridge Books, Cambridge University Press, number 9780521725200, 1.
- Vernon Henderson & Adam Storeygard & David N. Weil, 2009.
"Measuring Economic Growth from Outer Space,"
2009-8, Brown University, Department of Economics.
- Xavier Sala-i-Martin & Maxim Pinkovskiy, 2010. "African Poverty is Falling...Much Faster than You Think!," NBER Working Papers 15775, National Bureau of Economic Research, Inc.
- Deon Filmer & Kinnon Scott, 2012.
"Assessing Asset Indices,"
Springer, vol. 49(1), pages 359-392, February.
- Filmer, Deon & Pritchett, Lant, 1998. "Estimating wealth effects without expenditure data - or tears : with an application to educational enrollments in states of India," Policy Research Working Paper Series 1994, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:got:gotcrc:109. 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: (Dominik Noe)
If references are entirely missing, you can add them using this form.