IDEAS home Printed from https://ideas.repec.org/p/pri/rpdevs/deaton_measuringpoverty_204.pdf.html
   My bibliography  Save this paper

Measuring poverty in a growing world (or measuring growth in a poor world)

Author

Listed:
  • Angus Deaton

    (Princeton University)

Abstract

The extent to which growth reduces global poverty has been disputed for 30 years. Although there is better data than ever before, controversies are not resolved. A major problem is that consumption measured from household surveys, which is used to measure poverty, grows less rapidly than consumption measured in national accounts, in the world as a whole, and in large countries, particularly India, China, and the US. In consequence, measured poverty has fallen less rapidly than appears warranted by measured growth in poor countries. One plausible cause is that richer households are less likely to participate in surveys. But growth in the national accounts is also upwardly biased, and consumption in the national accounts contains large and rapidly growing items that are not consumed by the poor and not included in surveys. So it is possible for consumption of the poor to grow less rapidly than national consumption, without any increase in measured inequality. Current statistical procedures in poor countries understate the rate of global poverty reduction, and overstate growth in the world.

Suggested Citation

  • Angus Deaton, 2004. "Measuring poverty in a growing world (or measuring growth in a poor world)," Working Papers 178, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  • Handle: RePEc:pri:rpdevs:deaton_measuringpoverty_204.pdf
    as

    Download full text from publisher

    File URL: https://rpds.princeton.edu/sites/rpds/files/media/deaton_measuringpoverty_204.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Deininger, Klaus & Squire, Lyn, 1996. "A New Data Set Measuring Income Inequality," The World Bank Economic Review, World Bank Group, vol. 10(3), pages 565-591, September.
    2. Lance Taylor & Edmar L. Bacha, 1976. "The Unequalizing Spiral: A First Growth Model for Belindia," The Quarterly Journal of Economics, Oxford University Press, vol. 90(2), pages 197-218.
    3. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
    4. Harry X. Wu, 2000. "China'S Gdp Level And Growth Performance: Alternative Estimates And The Implications," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(4), pages 475-499, December.
    5. Mistiaen, Johan A. & Ravallion, Martin, 2003. "Survey compliance and the distribution of income," Policy Research Working Paper Series 2956, The World Bank.
    6. Ahluwalia, Montek S, et al, 1980. "Who Benefits from Economic Development? Comment," American Economic Review, American Economic Association, vol. 70(1), pages 242-245, March.
    7. Martin Ravallion, 2003. "Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 645-652, August.
    8. Rawski, Thomas G., 2001. "What is happening to China's GDP statistics?," China Economic Review, Elsevier, vol. 12(4), pages 347-354.
    9. Angus Deaton and Jean Drèze & Jean Drèze, 2002. "Poverty and Inequality in India: A Reexamination," Working papers 107, Centre for Development Economics, Delhi School of Economics.
    10. Cline, William R., 1975. "Distribution and development : A survey of literature," Journal of Development Economics, Elsevier, vol. 1(4), pages 359-400, November.
    11. Wu, Harry X, 2000. "China's GDP Level and Growth Performance: Alternative Estimates and the Implications," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(4), pages 475-499, December.
    12. Xavier Sala-i-Martin, 2001. "The disturbing 'rise' of global income inequality," Economics Working Papers 616, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 2002.
    13. Anne O. Krueger & Mr. Andrew Berg, 2003. "Trade, Growth, and Poverty: A Selective Survey," IMF Working Papers 2003/030, International Monetary Fund.
    14. Keidel, Albert, 2001. "China's GDP expenditure accounts," China Economic Review, Elsevier, vol. 12(4), pages 355-367.
    15. Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sinclair, Tara M., 2019. "Characteristics and implications of Chinese macroeconomic data revisions," International Journal of Forecasting, Elsevier, vol. 35(3), pages 1108-1117.
    2. Meng, Xin & Gregory, Robert & Wang, Youjuan, 2005. "Poverty, inequality, and growth in urban China, 1986-2000," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 710-729, December.
    3. Thierry Verdier, 2005. "Intégration commerciale « socialement responsable » : une approche en termes d'économie politique," Revue d’économie du développement, De Boeck Université, vol. 13(4), pages 55-121.
    4. Francois, Joseph & Rojas-Romagosa, Hugo, 2005. "The Construction and Interpretation of Combined Cross-Section and Time-Series Inequality Datasets," CEPR Discussion Papers 5214, C.E.P.R. Discussion Papers.
    5. Ayal Kimhi, 2004. "Growth, Inequality and Labor Markets in LDCs: A Survey," CESifo Working Paper Series 1281, CESifo.
    6. Radwan Shaban & Hiromi Asoaka & Bob Barnes & Vladimir Drebentsov & John Langenbrunner & Sajaia Zurab & James Stevens & David Tarr & Emil Tesliuc & Olga Shabalina & Ruslan Yemtsov, 2006. "Reducing Poverty through Growth and Social Policy Reform in Russia," World Bank Publications - Books, The World Bank Group, number 6955.
    7. Lee, Boon L. & Rao, D.S. Prasada & Shepherd, William, 2007. "Comparisons of real output and productivity of Chinese and Indian manufacturing, 1980-2002," Journal of Development Economics, Elsevier, vol. 84(1), pages 378-416, September.
    8. repec:dau:papers:123456789/4459 is not listed on IDEAS
    9. repec:pri:rpdevs:deaton_how_to_monitor_poverty_for_the_millennium_development_goals_jhd.pd is not listed on IDEAS
    10. Charlotte Guénard & Sandrine Mesplé-Somps, 2004. "Measuring inequalities: Do the surveys give the real picture? Study of two surveys in Cote d’Ivoire and Madagascar," Working Papers DT/2004/13, DIAL (Développement, Institutions et Mondialisation), revised Dec 2004.
    11. Branko Milanovic, 2005. "Global Income Inequality: What It Is And Why It Matters?," HEW 0512001, University Library of Munich, Germany.
    12. Kenneth Clements & Yihui Lan, 2007. "Exchange rates, productivity, poverty and inequality," Applied Economics, Taylor & Francis Journals, vol. 39(4), pages 471-476.
    13. Heshmati, Almas, 2004. "The World Distribution of Income and Income Inequality," IZA Discussion Papers 1267, Institute of Labor Economics (IZA).
    14. Svedberg, Peter, 2003. "World Income Distribution: Which Way?," Seminar Papers 724, Stockholm University, Institute for International Economic Studies.
    15. Meschi, Elena & Vivarelli, Marco, 2009. "Trade and Income Inequality in Developing Countries," World Development, Elsevier, vol. 37(2), pages 287-302, February.
    16. Angus Deaton, 2003. "Data for monitoring the poverty MDG," Human Development Occasional Papers (1992-2007) HDOCPA-2003-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    17. Vinod Thomas, 2009. "Income Disparity and Growth," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 1(1), pages 63-86, January.
    18. Nancy Birdsall, 2008. "Income Distribution: Effects on Growth and Development," Chapters, in: Amitava Krishna Dutt & Jaime Ros (ed.), International Handbook of Development Economics, Volumes 1 & 2, volume 0, chapter 48, Edward Elgar Publishing.
    19. Kebede, Sindu & Fekadu, Belay & Aredo, Dejene, 2011. "Trade Liberalization and Poverty: A Macro-Micro Analysis in Ethiopia," Proceedings of the German Development Economics Conference, Berlin 2011 44, Verein für Socialpolitik, Research Committee Development Economics.
    20. Patricia Justino & Julie Litchfield & Laurence Whitehead, 2003. "The Impact of Inequality in Latin America," PRUS Working Papers 21, Poverty Research Unit at Sussex, University of Sussex.
    21. Ann Harrison & John McLaren & Margaret S. McMillan, 2010. "Recent Findings on Trade and Inequality," NBER Working Papers 16425, National Bureau of Economic Research, Inc.
    22. Bas van Leeuwen & Peter Foldvari, 2012. "The development of inequality and poverty in Indonesia, 1932-1999," Working Papers 0026, Utrecht University, Centre for Global Economic History.

    More about this item

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pri:rpdevs:deaton_measuringpoverty_204.pdf. 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: . General contact details of provider: https://edirc.repec.org/data/rpprius.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bobray Bordelon (email available below). General contact details of provider: https://edirc.repec.org/data/rpprius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.