An Analysis of the Relationship between Various Redistributive Programs and Poverty

Michael Nieswiadomy, K Hayes and Daniel Slottje

Public Choice, 1991, vol. 68, issue 1-3, 175-84

Abstract: This paper utilizes multivariate exogeneity (causality) tests to analyze the relationship between various income policy programs and the poverty rate. The framework the authors develop allows them to make a distinction between intended poverty reduction objectives and automatic stabilizing behavior. Since they find that the poverty in a given year affects the funding of social programs in later years, the authors conclude that these programs are primarily acting as automatic stabilizers (i.e., the poverty reduction instruments do not appear to have been implemented with a relentless intent to reduce poverty, a result consistent with Tullock's theorem). Copyright 1991 by Kluwer Academic Publishers

Date: 1991
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