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Robust Poverty Comparisons and Marginal Policy Reform Orderings Under Income Variability

  • Paul MAKDISSI

    ()

    (Département d’´economique and CEREF, Universit´e de Sherbrooke, 2550 boulevard de l’Universit´e, Sherbrooke, Qu´ebec, Canada, J1K 2R1)

  • Quentin WODON

    ()

    (LCSPR, World Bank, 1818 H Street, NW, Washington, DC 20433, USA)

A method is proposed to provide robust poverty comparisons and robust evaluations of marginal policy reforms under income variability. Given that a household’s certainty equivalent income depends on both expected income and income variability, stochastic dominance tests are developed in order to deal simultaneously with both dimensions.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/03_05_pm.pdf
File Function: First version, 2003
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 03-05.

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Length: 17 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:shr:wpaper:03-05
Contact details of provider: Postal: Sherbrooke, Québec, J1K 2R1
Phone: (819) 821-7233
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  1. 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.
  2. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  3. Duclos, Jean-Yves & Makdissi, Paul & Wodon, Quentin, 2003. "Poverty-Efficient Transfer Programs: The Role of Targeting and Allocation Rules," Cahiers de recherche 0305, CIRPEE.
  4. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  5. Mayshar, Joram & Yitzhaki, Shlomo, 1995. "Dalton-Improving Indirect Tax Reform," American Economic Review, American Economic Association, vol. 85(4), pages 793-807, September.
  6. Shlomo Yitzhaki & Joel Slemrod, 1987. "Welfare Dominance: An Application to Commodity Taxation," NBER Working Papers 2451, National Bureau of Economic Research, Inc.
  7. Buhong Zheng, 1999. "On the power of poverty orderings," Social Choice and Welfare, Springer, vol. 16(3), pages 349-371.
  8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  9. Makdissi, Paul & Wodon, Quentin, 2002. "Consumption dominance curves: testing for the impact of indirect tax reforms on poverty," Economics Letters, Elsevier, vol. 75(2), pages 227-235, April.
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