Poverty Accounting. A fractional response approach to poverty decomposition

Richard Bluhm, Denis de Crombrugghe () and Adam Szirmai
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Denis de Crombrugghe: Maastricht University, The Netherlands

No 413, Working Papers from ECINEQ, Society for the Study of Economic Inequality

Abstract: This paper proposes a new empirical framework for poverty accounting. Using a large collection of household surveys from 124 countries, we estimate income and inequality (semi-)elasticities of poverty for the \$2 and \$1.25 a day poverty lines as well as their contributions to poverty alleviation. We show that initial inequality is a strong moderator of the impact of growth and there has been a shift towards more pro-poor growth around the turn of the millennium. We project poverty rates until 2030 and show that an end of extreme poverty within a generation is unlikely.

Keywords: poverty; inequality; income growth; fractional response models. (search for similar items in EconPapers)
JEL-codes: C25 I32 O10 O15 (search for similar items in EconPapers)
Pages: 53 pages
Date: 2016-10
New Economics Papers: this item is included in nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:inq:inqwps:ecineq2016-413

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