Role of Growth and Distribution in the Observed Change in Headcount Ratio Measure of Poverty: A Decomposition Exercise for India

L. R. Jain and Suresh D. Tendulkar
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L. R. Jain: Indian Statistical Institute, New Delhi
Suresh D. Tendulkar: Delhi School of Economics

Indian Economic Review, 1990, vol. 25, issue 2, 165-205

Abstract: This paper presents a method and analysis the results of decomposing the change in headcount ratio measure of poverty (CHR) between 1970-71 and 1983, separately for rural and urban population of 20 states, into two additive components, viz., one attributable to growth in real average per capita total expenditure (APCTE) (growth effect) and the other to a change in the relative size distribution of PCTE (distribution effect). Based on regression analysis an attempt is also made to explain inter-state variations in CHR with the help of growth in real APCTE and base-year headcount ratio and relate the residual from the regression equation to the distribution effect.

Date: 1990
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