Poverty Reducing Reforms and Subgroup Consumption Dominance Curves

Paolo Liberati

Review of Income and Wealth, 2003, vol. 49, issue 4, 589-601

Abstract: One vexed question of anti‐poverty strategies is that of setting a reasonable poverty line. To escape its specification, recent developments by Yitzhaki and Slemrod (1991) have introduced the correspondence between non‐intersecting concentration curves and poverty reducing directions of reforms. Makdissi and Wodon (2002) have derived consumption dominance curves for any order of restricted stochastic dominance. In this paper, consumption dominance curves are extended to subgroups of population. Empirical evidence of the approach will be shown using the 1997 data from Belarus, considering public subsidies on rents and utilities, health care and public transport in six groups of population.

Date: 2003
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