Welfare Distribution in Rural and Urban Centres in Nigeria: A Stochastic Dominance Approach

John C. Odozi, Taiwo Timothy Awoyemi and Bolarin T. Omonona

Journal of Rural Economics and Development, 2008, vol. 17, 11

Abstract: Policy makers are interested in knowing the welfare effect of the many development programmes implemented in rural centres in Nigeria. This study applied stochastic dominance approach to show whether the aggregate welfare in rural centres was better than in urban centres using the household survey data for Nigeria collected by the national Bureau of Statistics. The monetary approach of measuring welfare was adopted and consumption expenditure was chosen over household income following its practicability in a developing country context. Adjustments were also made so as to fit welfare distribution as much as possible. The main findings were that rural centres had better aggregate welfare only for the class of welfare function that is equity loving. For the class of welfare function that is equity and efficiency loving, aggregate welfare dominance of rural centres over urban centres was inconclusive. However, with further imposition of Pigou Dalton transfer condition using the generalized Lorenz curve, rural aggregate welfare showed dominance over urban aggregate welfare. This suggests that redistribution of incomes through rural development programmes may have much more effect on rural aggregate welfare.

Keywords: Community/Rural/Urban Development; Production Economics; Productivity Analysis; Public Economics (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/147642/files/Mr.%20Odozi.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: https://EconPapers.repec.org/RePEc:ags:ngjred:147642

DOI: 10.22004/ag.econ.147642

Access Statistics for this article

More articles in Journal of Rural Economics and Development from University of Ibadan, Department of Agricultural Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().