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Robust Multiperiod Poverty Comparisons

Author

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  • Johannes Gräb

    () (University of Goettingen)

  • Michael Grimm

    () (University of Göttingen)

Abstract

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.

Suggested Citation

  • Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Ibero America Institute for Econ. Research (IAI) Discussion Papers 160, Ibero-America Institute for Economic Research.
  • Handle: RePEc:got:iaidps:160
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/ibero/papers/DB160.pdf
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    References listed on IDEAS

    as
    1. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    2. Walter Bossert & Conchita D'Ambrosio & Vito Peragine, 2007. "Deprivation and Social Exclusion," Economica, London School of Economics and Political Science, vol. 74(296), pages 777-803, November.
    3. 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.
    4. 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.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Hulme, David & Shepherd, Andrew, 2003. "Conceptualizing Chronic Poverty," World Development, Elsevier, vol. 31(3), pages 403-423, March.
    7. 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.
    8. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 25-49, April.
    9. Richard Breen & Pasi Moisio, 2004. "Poverty dynamics corrected for measurement error," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(3), pages 171-191, July.
    10. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 179-197, August.
    11. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-177, January.
    12. Cruces, Guillermo, 2005. "Income fluctuation, poverty and well-being over time: theory and application to Argentina," LSE Research Online Documents on Economics 6545, London School of Economics and Political Science, LSE Library.
    13. 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.
    14. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
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    Citations

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    Cited by:

    1. Dartanto, Teguh & Otsubo, Shigeru, 2016. "Intrageneration Poverty Dynamics in Indonesia: Households’ Welfare Mobility Before, During, and After the Asian Financial Crisis," Working Papers 117, JICA Research Institute.
    2. Andy Sumner, 2014. "Who are likely to be the future poor in Indonesia? Evidence on primary school non-completion from six rounds of the Demographic and Health Survey, 1991-2012," Working Papers in Economics and Development Studies (WoPEDS) 201406, Department of Economics, Padjadjaran University, revised May 2014.
    3. Arndt, Channing & Distante, Roberta & Hussain, M. Azhar & Østerdal, Lars Peter & Huong, Pham Lan & Ibraimo, Maimuna, 2012. "Ordinal Welfare Comparisons with Multiple Discrete Indicators: A First Order Dominance Approach and Application to Child Poverty," World Development, Elsevier, vol. 40(11), pages 2290-2301.
    4. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
    5. Michael Hoy & Brennan Thompson & Buhong Zheng, 2012. "Empirical issues in lifetime poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(2), pages 163-189, June.
    6. repec:unu:wpaper:wp2012-36 is not listed on IDEAS
    7. Andy Sumner & Arief Anshory Yusuf & Yangki Imade Suara, 2014. "The Prospects of the Poor: A Set of Poverty Measures Based on the Probability of Remaining Poor (or Not) in Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201410, Department of Economics, Padjadjaran University, revised Jul 2014.
    8. Burak GURBUZ & Marc RAFFINOT, 2011. "Croissance Et Repartition Des Revenus En Turquie (1994-2005) : Quel Impact Sur La Pauvrete ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 34, pages 19-38.
    9. Indranil Dutta & Laurence Roope & Horst Zank, 2013. "On intertemporal poverty measures: the role of affluence and want," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 741-762, October.

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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