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Bayesian Inference for TIP curves: An Application to Child Poverty in Germany

Edwin Fourrier-Nicolaï and Michel Lubrano ()

No 1710, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: TIP curves are cumulative poverty gap curves used for representing the three different aspects of poverty: incidence, intensity and inequality. The paper provides Bayesian inference for TIP curves, linking their expression to a parametric representation of the income distribution using a mixture of lognormal densities. We treat specifically the question of zero-inflated income data and survey weights, which are two important issues in survey analysis. The advantage of the Bayesian approach is that it takes into account all the information contained in the sample and that it provides small sample confidence intervals and tests for TIP dominance. We apply our methodology to evaluate the evolution of child poverty in Germany after 2002, providing thus an update the portrait of child poverty in Germany given in Corak et al. 2008.

Keywords: Bayesian inference; mixture model; survey weights; zero-inflated model; poverty; Inequality (search for similar items in EconPapers)
JEL-codes: C11 C46 I32 I38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ecm and nep-eur
Date: 2017-03
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