Calculating Poverty Measures from the Generalized Beta Income Distribution
Data for measuring poverty and income inequality are frequently available in a summary form that describes the proportion of income or expenditure for each of a number of population proportions. While various discrete measures can be applied directly to data in this limited form, these discrete measures typically ignore inequality within each group. This problem can be overcome by fitting a parametric income distribution to the grouped data and computing required quantities from the estimated parameters of this distribution. In this paper we show how to calculate several poverty measures from parameters of the generalized beta distribution of the second kind, and its popular special cases. An analysis of poverty changes in ten countries from South and Southeast Asia is used to illustrate the methodology.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, The University of Melbourne, 4th Floor, FBE Building, Level 4, 111 Barry Street. Victoria, 3010, Australia|
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
Web page: http://fbe.unimelb.edu.au/economics
More information through EDIRC
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.:
- Gholamreza Hajargasht & William E. Griffiths & Joseph Brice & D.S. Prasada Rao & Duangkamon Chotikapanich, 2012.
"Inference for Income Distributions Using Grouped Data,"
Journal of Business & Economic Statistics,
Taylor & Francis Journals, vol. 30(4), pages 563-575, May.
- Gholamreza Hajargsht, William E. Griffiths, Joseph Brice, D.S. Prasada Rao, Duangkamon Chotikapanich, 2012. "Inference for Income Distributions Using Grouped Data," Department of Economics - Working Papers Series 1140, The University of Melbourne.
- Lars Osberg & Kuan Xu, 2008.
"How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study,"
Review of Development Economics,
Wiley Blackwell, vol. 12(2), pages 419-441, 05.
- Lars Osberg & Kuan Xu, 2007. "How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study," Department of Economics at Dalhousie University working papers archive rderevision9, Dalhousie, Department of Economics.
- Madden, D., 1999.
"Relative or Absolute Poverty Lines: A New Approach,"
99/9, College Dublin, Department of Political Economy-.
- Madden, David, 2000. "Relative or Absolute Poverty Lines: A New Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 181-99, June.
- David (David Patrick) Madden, 1999. "Relative or absolute poverty lines : a new approach," Working Papers 199909, School of Economics, University College Dublin.
- Martin Ravallion & Shaohua Chen & Prem Sangraula, 2009.
"Dollar a Day Revisited,"
World Bank Economic Review,
World Bank Group, vol. 23(2), pages 163-184, June.
- Chotikapanich, Duangkamon & Griffiths, William E. & Rao, D. S. Prasada, 2007.
"Estimating and Combining National Income Distributions Using Limited Data,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 25, pages 97-109, January.
- D.S. Prasada Rao & Duangkamon Chotikapanich & William E. Griffiths, 2004. "Estimating and Combining National Income Distributions using Limited Data," Econometric Society 2004 Australasian Meetings 213, Econometric Society.
- Duangkamon Chotikapanich & William E. Griffiths & D.S. Prasada Rao, 2005. "Estimating and Combining National Income Distributions using Limited Data," Department of Economics - Working Papers Series 926, The University of Melbourne.
- McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-63, May.
- Duangkamon Chotikapanich & William E. Griffiths & D. S. Prasada Rao & Vicar Valencia, 2012. "Global Income Distributions and Inequality, 1993 and 2000: Incorporating Country-Level Inequality Modeled with Beta Distributions," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 52-73, February.
When requesting a correction, please mention this item's handle: RePEc:mlb:wpaper:1154. 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: (Katherine Perez)
If references are entirely missing, you can add them using this form.