Counterfactual Decomposition of Pro-Poorness Using Influence Functions

B. Essama-Nssah and Peter J. Lambert

Journal of Human Development and Capabilities, 2016, vol. 17, issue 1, 74-92

Abstract: Poverty reduction has emerged as a fundamental social objective of development, and has become a metric commonly used to assess the performance of public policy. This paper adapts the methodology of Firpo, Fortin and Lemieux (2009) [2009. “Unconditional Quantile Regressions.” Econometrica 77 (3): 953--973] to the measurement of the pro-poorness of income growth. The method allows the analyst to identify covariates that affect poverty reduction. The methodology is policy-relevant because policy-makers can better target these covariates than the average level of income, or the level of inequality. We demonstrate this by application to Bangladesh 2000--2010.

Date: 2016
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DOI: 10.1080/19452829.2015.1115392

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