Determinants of the Growth Semi-Elasticity of Poverty Reduction

Mark Misselhorn and Stephan Klasen

No 15, Proceedings of the German Development Economics Conference, Berlin 2006 from Verein für Socialpolitik, Research Committee Development Economics

Abstract: In this paper we examine the mathematical relationship between growth and distributional change on absolute (i.e. percentage point) changes in FGT poverty measures assuming a log-normal distribution. We also test the empirical relationship of the derived semi-elasticities of growth and distributional change on poverty and find them to explain changes in poverty very well (in fact, better than a related study by Bourguignon (2003) that studied the 'regular' growth elasticity of poverty reduction). This relationship will allow us to predict where growth and distributional change will have the largest (absolute) impact on poverty reduction, which is very useful for predicting and analyzing progress towards meeting MDG1.

Date: 2006
New Economics Papers: this item is included in nep-dev and nep-fin
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Working Paper: Determinants of the Growth Semi-Elasticity of Poverty Reduction (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:gdec06:4738

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