A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case

Ismael Ahamdanech, Carmelo García-Pérez and Mercedes Prieto-Alaiz
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Ismael Ahamdanech: Department of Economics, University of Alcalá, 28802 Alcalá de Henares, Spain
Carmelo García-Pérez: Department of Economics, University of Alcalá, 28802 Alcalá de Henares, Spain
Mercedes Prieto-Alaiz: Department of Applied Economics, University of Valladolid, 47011 Valladolid, Spain

Sustainability, 2020, vol. 12, issue 5, 1-16

Abstract: In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.

Keywords: pro-poor growth; poverty; stochastic dominance; Spanish regions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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