Why Do Poverty Rates Differ From Region to Region?: the Case of Urban China

Yin Zhang () and Guanghua Wan

No RP2005-56, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper proposes a semi-parametric method for poverty decomposition, which combines the data-generating procedure of Shorrocks and Wan (2004) with the Shapley value framework of Shorrocks (1999). Compared with the popular method of Datt and Ravallion (1992), our method is more robust to misspecification errors, does not require the predetermination of functional forms, provides better fit to the underlying Lorenz curve and incorporates the residual term in a rigorous way.

Keywords: Econometric models (Economic development); Poverty; Regional economics (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (3)

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