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Changing Times, Testing Times: A Bootstrap Analysis of Poverty and Inequality using the PACO Database

  • Georges Heinrich
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    Conclusions about poverty and the distribution of incomes are typically based on information obtained from sample surveys. However, sample surveys are subject to sampling and non-sampling errors. Statistical inference allows us to deal with sampling errors. In this paper, we demonstrate the usefulness of bootstrapping techniques for carrying out statistical inference for poverty and inequality measures. We analyse poverty and income inequality among pensioners in Hungary, Luxembourg and the United Kingdom. We carry out comparisons of the living standards of pensioners across countries and over time. Our results have far-reaching policy implications for the reforms of public pension systems currently under way.

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    Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 9802.

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    Date of creation: 1998
    Date of revision:
    Handle: RePEc:hwe:certdp:9802
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    1. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-39, November.
    2. Blackburn, McKinley L, 1994. "International Comparisons of Poverty," American Economic Review, American Economic Association, vol. 84(2), pages 371-74, May.
    3. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-42, June.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
    5. Nelson, Julie A, 1993. "Household Equivalence Scales: Theory versus Policy?," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 471-93, July.
    6. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, July.
    7. Tim Callan & Brian Nolan, 1987. "Concepts of Poverty and the Poverty Line," Papers WP002, Economic and Social Research Institute (ESRI).
    8. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-50, March-Apr.
    9. Burkhauser, Richard V & Smeeding, Timothy M & Merz, Joachim, 1996. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 381-400, December.
    10. Palacios, Robert & Rocha, Roberto, 1998. "The Hungarian pension system in transition," Social Protection Discussion Papers 20048, The World Bank.
    11. Ruth Hancock & Stephen Pudney, . "State Pensions and the Welfare of Pensioners during Economic Transition: An Analysis of Hungarian Survey Data," Discussion Papers in European Economics 96/1, Department of Economics, University of Leicester.
    12. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
    13. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
    14. Ian Rongve, 1997. "Statistical inference for poverty indices with fixed poverty lines," Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 387-392.
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