Decomposing Poverty Changes into Vertical and Horizontal Components

Sami Bibi () and Jean-Yves Duclos

Cahiers de recherche from CIRPEE

Abstract: Variations in aggregate poverty indices can be due to differences in average poverty intensity, to changes in the welfare distances between those poor of initially unequal welfare status, and/or to emerging disparities in welfare among those poor of initially similar welfare status. This note uses a general cost-of-inequality approach that decomposes the total change in poverty into a sum of indices of each of these three components. This decomposition can serve inter alia to integrate horizontal and vertical equity criteria in the poverty alleviation assessment of social and economic programs. The use of these measures in briefly illustrated using Tunisian data.

Keywords: Poverty; Vertical Equity; Horizontal Equity; Targeting; Tunisia (search for similar items in EconPapers)
JEL-codes: D12 D63 H53 I32 I38 (search for similar items in EconPapers)
Date: 2003
New Economics Papers: this item is included in nep-ltv
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Journal Article: Decomposing poverty changes into vertical and horizontal components (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:lacicr:0312

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