Poverty and Expenditure Differentiation of the Russian Population

Aivazian Sergey () and Stanislav Kolenikov ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: The problem of poverty and inequality measurement in contemporary Russian society is considered within the framework of the general problem of social tension reduction via efficient organization of the social assistance system. We argue that features specific to Russian transition stipulate that poverty indicators (e.g., Foster-Greer-Thorbecke family) be calculated on the basis of expenditure rather than income as it is usually done. These features are also accounted for in the econometric model of per capita expenditure distribution. The model includes special methods to calibrate, or to adjust, the distributions obtained from the official budget surveys' statistics. The results of the empirical approbation of the technique are reported, which use the RLMS (Rounds 5 – 8) statistical data as well as budget surveys of Komi Republic, Volgograd and Omsk regions.

Keywords: Russia; economic inequality; per capita expenditure distribution of population; indicators of poverty; survey; unit non-response (truncation); censoring; misreporting; mixture model; optimal allocation of social assistance; transition; missing data (search for similar items in EconPapers)
JEL-codes: C13 C15 D31 I32 P29 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec and nep-ltv
Date: 2001-01-01

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