"Leftist", "Rightist" and Intermediate Decompositions of Poverty Variations with an Application to China from 1990 to 2003

Florent Bresson () and LABAR Kelly ()
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No 200727, Working Papers from CERDI

Abstract: This paper investigates the influence of invariance axioms in the decomposition of observed poverty variations into growth and inequality effects. After a complete and critical review of the invariance axioms suggested in the literature, we show that few information is needed for the ordering of the effects respectively obtained through scale, translation and intermediate invariance. Using Chinese data for the period 1990-2003, we find that some commonly observed results of the decomposition are contingent to the invariance axiom choices whilst other are robust to changes in ethical preferences.

Keywords: China; Decomposition; Poverty; growth effect; inequality effect; intermediate invariance; scale invariance; translationinvariance (search for similar items in EconPapers)
Date: 2007

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Working Paper: “Leftist”, “Rightist” and Intermediate Decompositions of Poverty: Variations with an Application to China from 1990 to 2003 (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:cdi:wpaper:928

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