EconPapers    
Economics at your fingertips  
 

Fluctuations and persistence in poverty: a transient-chronic decomposition model for pseudo-panel data

Rafael Ribas (), Ana Machado () and André Braz Golgher
Additional contact information
André Braz Golgher: Cedeplar-UFMG

Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais

Abstract: Although many studies addressed poverty issues, very few of then did analyze the transient or persistent nature of this phenomenon. Encouraged by this lack of dynamic poverty analyses, the objective of this paper is to evaluate which features determine the relative position and the dynamics of the destitution state of the individual. Due to the scarcity of panel surveys in Brazil, it was used a pseudo-panel obtained from the Pesquisa Nacional por Amostra de Domicílios (PNAD/IBGE) database in this study. With these data, the state permanence and the state transience probabilities were estimated in a Markov matrix with the application of a bivariate probit model with endogenous switching for grouped data. It was chosen as the welfare indicator the per capita household income, which was analyzed in relation to a relative poverty line. Moreover, in order to verify the sensibility of the parameters estimated in the econometric analysis, distinct poverty lines were used and also different assumptions of household scale economies and of intrahousehold relative costs were made. The transient-chronic analysis is based on the distinction between stationary and transient components of intertemporal propensity to poverty. The results enabled to identify which groups in the population were especially sensitive to the chronic and to the transient types of poverty.

Keywords: chronic poverty; transient poverty; state persistence; state transition; endogenous switching probit model; pseudo-panel; Brazil (search for similar items in EconPapers)
JEL-codes: C35 C51 I32 (search for similar items in EconPapers)
Date: 2006-05
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.cedeplar.ufmg.br/pesquisas/td/TD%20290.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cdp:texdis:td290

Ordering information: This working paper can be ordered from
Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil

Access Statistics for this paper

More papers in Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais Cedeplar-FACE-UFMG Av. Antonio Carlos, 6627 Belo Horizonte, MG 31270-901 Brazil. Contact information at EDIRC.
Series data maintained by Gustavo Britto ().

 
Page updated 2017-09-16
Handle: RePEc:cdp:texdis:td290