Regional heterogeneity in growth and inequality elasticities of poverty in transition countries
Applied Economics Letters, 2015, vol. 22, issue 6, 425-429
Using data for 25 transition countries, this article provides estimates of the growth and inequality elasticities of poverty for three regions: Central Europe (CE), South-East Europe and the former Soviet Union (FSU). Regional differences in the elasticities are decomposed into the contributions of (i) differences in initial conditions (expenditure density at the poverty line and inequality) and (ii) differences in sensitivity of the elasticities to these initial conditions. The elasticities are highest for CE and lowest for the FSU. Using a common poverty line, regional elasticity differences are explained predominantly by differences in the mean consumption expenditures per capita.
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