THE APPLICATION OF AN ENDOGENOUS POVERTY LINE AND ITS RELATIONSHIP WITH THE POVERTY IMPACT OF ECONOMIC SHOCKS: AN EMPIRICAL INVESTIGATION

2013 ◽  
Vol 58 (01) ◽  
pp. 1350005 ◽  
Author(s):  
TEGUH DARTANTO
Keyword(s):  
Computable General Equilibrium ◽  
Poverty Line ◽  
Poverty Rate ◽  
Policy Reforms ◽  
Economic Shocks ◽  
Percentage Points ◽  
Soybean Price ◽  
The Difference ◽  
Fixed Line ◽  
The Impact

Most of the studies on the poverty impact of economic shocks as well as policy reforms assumed the poverty line as a fixed line; thus, the poverty outcome of shocks may underestimate (overestimate) and mislead in policy guidance. This research aims at empirically investigating the difference of poverty outcome between applying a fixed and an endogenous poverty line. Applying computable general equilibrium microsimulation (CGE-MS), this study has empirically proven that, if a fixed poverty line is applied, the poverty impact of economic shocks which significantly increase (decrease) price will always be underestimated (overestimated). This study empirically found that there is a 0.316 percentage point difference in the poverty outcome between applying the endogenous poverty line and the fixed poverty line when analyzing the impact on poverty in Indonesia of a doubling in the imported soybean price. Supposing the fixed poverty line, the poverty rate will increase by 0.167 percentage points, while supposing the endogenous poverty line, the poverty rate will increase by 0.483 percentage points. Therefore, applying either an endogenous or a fixed poverty line will have a different policy implication. This study strongly suggested that the endogenous poverty line should be applied when analyzing the poverty impact of shocks due to the precision in outcomes.

Can the Post-COVID FDI Boost the Indian Economy?

2022 ◽  
pp. 097226292110662
Author(s):  
Isha Jaswal ◽  
Badri Narayanan G ◽  
Shanu Jain
Keyword(s):  
Computable General Equilibrium ◽  
Motor Vehicle ◽  
Trade Policies ◽  
Cge Model ◽  
Foreign Direct Investments ◽  
Policy Reforms ◽  
Fdi Inflows ◽  
Area Of Interest ◽  
Potential Impact ◽  
The Impact

Ever since the liberation of trade policies in India, Foreign Direct Investments (FDI) has been crucial in the growth of the economy, both at the macro as well as sector level. The association between FDI and economic growth is an area of interest globally. The investment decisions are affected by several national and international events that add to the volatility of the number of inflows. COVID-19 pandemic severely impacted the intensity of FDI inflows. But the strong resilience by our government manifested in crucial policy reforms and proactive decision-making minimized the impact. This article examines the potential impact of FDI on crucial macroeconomic variables using the Computable General Equilibrium (CGE) Model. Introducing the policy shock of $90 billion into the model, an increase of 5.68% per annum in GDP is estimated. Findings indicate that the impact of FDI shall be favourable to a large number of sectors mainly metals, construction, motor vehicle, computers, and electronics in terms of increased output, exports, and employment opportunities. The study offers logical implications for the policymakers to continue strengthening their moves to attract FDI.

scholarly journals Poverty In The United States: A Continuing And Growing Problem

2011 ◽  
Vol 5 (12) ◽  
Author(s):  
Berch Haroian ◽  
Elizabeth C. Ekmekjian ◽  
Elias C. Grivoyannis
Keyword(s):  
Household Income ◽  
Insurance Coverage ◽  
Poverty Line ◽  
Health Insurance Coverage ◽  
The United States ◽  
Poverty Rate ◽  
Median Household Income ◽  
The Past ◽  
Area Of Interest ◽  
The Impact

<p class="Default" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">In recent years, the ability to deal with the problem of poverty in the US, in light of the new &ldquo;Federalism,&rdquo; is an area of interest to scholars. The poverty rate over the past 50 years has fluctuated from a high of 22.4% in 1959 to a low of 11.1% in 1973. Under George Bush&rsquo;s presidency, we again see an increase in the poverty rate to 12.7% in 2004. This paper provides an overview of poverty data for the 21<sup>st</sup> century, by region, race and age.<span style="mso-spacerun: yes;">&nbsp; </span>A discussion and comparison of median household income follows. Facts and figures are then provided/compared, tying in health care issues to income levels and citizenship/ethnicity. A brief introduction of the various attempts over the past years by the federal government to reduce the proportion of the American population that falls below the poverty line follows.<span style="mso-spacerun: yes;">&nbsp; </span>This section merely provides a listing of programs designed to satisfy social and equity considerations.<span style="mso-spacerun: yes;">&nbsp; </span>This paper does not provide the reader with the impact of these programs on the economy; a brief mention is provided to generate further thought and discussion.<span style="mso-spacerun: yes;">&nbsp; </span>The paper concludes with a summary of key elements of the above issues. The sole purpose is to provide an overview of historical data as concerns poverty, median household income and health insurance coverage. The ability to deal with the problem of poverty in the U S, is left for another paper.</span></span></p>

scholarly journals The role of automatic stabilizers and emergency tax–benefit policies during the COVID-19 pandemic in Ecuador

2021 ◽  
Author(s):  
H. Xavier Jara ◽  
Lourdes Montesdeoca ◽  
Iva Tasseva
Keyword(s):  
Poverty Line ◽  
Poverty Rate ◽  
Income Poverty ◽  
Economic Shocks ◽  
New Family ◽  
Poverty And Inequality ◽  
Household Disposable Income ◽  
Household Incomes ◽  
Income Decile

This paper makes use of tax–benefit microsimulation techniques to quantify the distributional effects of COVID-19 in Ecuador and the role of tax–benefit policies in mitigating the immediate impact of the economic shocks. Our results show a dramatic increase in income poverty and inequality between December 2019 and June 2020. The poverty rate, measured with the national poverty line, goes up from 25.7 to 58.2 per cent over this period and extreme poverty increases from 9.2 to 38.6 per cent. Inequality measured by the Gini coefficient increases substantially from 0.461 to 0.592. On average, household disposable income drops by 41 per cent. The new Family Protection Grant provides income protection for the poorest income decile. However, overall tax–benefit policies do little to mitigate the losses in household incomes due to the pandemic.

scholarly journals The Impact of Intergovernmental Transfers on Education Outcomes and Poverty Reduction

2013 ◽  
Vol 5 (4) ◽  
pp. 206-240 ◽  
Author(s):  
Stephan Litschig ◽  
Kevin M Morrison
Keyword(s):  
Government Spending ◽  
Poverty Reduction ◽  
Poverty Rate ◽  
Crowding Out ◽  
Intergovernmental Transfers ◽  
Education Outcomes ◽  
Revenue Sources ◽  
Percentage Points ◽  
Per Capita ◽  
The Impact

This paper provides regression discontinuity evidence on development impacts of intergovernmental transfers. Extra transfers in Brazil increased local government spending per capita by about 20 percent over a 4 year period with no evidence of crowding out own revenue or other revenue sources. Schooling per capita increased by about 7 percent and literacy rates by about 4 percentage points. In line with the effect on human capital, the poverty rate was reduced by about 4 percentage points. Somewhat noisier results also suggest that the reelection probability of local incumbent parties in the 1988 elections improved by about 10 percentage points. (JEL H72, H75, I21, I28, I32, I38, O15)

Medicaid Expansion and Not-For-Profit Hospitals’ Financial Status: National and State-Level Estimates Using IRS and CMS Data, 2011-2016

2021 ◽  
pp. 107755872110097
Author(s):  
Tatiane Santos ◽  
Simone Singh ◽  
Gary J. Young
Keyword(s):  
Hospital Costs ◽  
State Level ◽  
Medicaid Expansion ◽  
Financial Status ◽  
For Profit ◽  
Not For Profit ◽  
Percentage Points ◽  
The Difference ◽  
Using Data ◽  
The Impact

Several studies have shown that Medicaid expansion has improved hospital financial performance. All of these studies have either used data from the Internal Revenue Service (IRS) or the Centers for Medicare and Medicaid Services (CMS), and none of them has examined the state-level impact of expansion on hospital finances. Using data for not-for-profit hospitals from both IRS and CMS for 2011-2016, we described the difference in costs related to uncompensated care and Medicaid shortfalls. We then estimated the impact of Medicaid expansion on hospitals’ financial status nationally and by state. Nationally, the estimated net effect of expansion reduced not-for-profit hospital costs by 2 percentage points based on IRS data and 0.83 percentage points based on CMS data. Across expansion states, the estimated net effects varied widely with approximately a 10-fold difference for hospitals based on IRS data and a 2-fold difference based on CMS data. Future studies should further explore the differences across IRS and CMS data.

scholarly journals 570. Prioritized Access to COVID-19 Vaccines Among Vulnerable Communities Increases Vaccination Rates

2021 ◽  
Vol 8 (Supplement_1) ◽  
pp. S386-S387
Author(s):  
Leonor Fernandez ◽  
Ashley O'Donoghue ◽  
Peter Shorett ◽  
Jonathan Blair ◽  
Lawrence Markson ◽  
...  
Keyword(s):  
Health System ◽  
Urban Communities ◽  
P Value ◽  
Vaccination Rates ◽  
Vulnerable Communities ◽  
Early Access ◽  
Percentage Points ◽  
The Difference ◽  
National Trends ◽  
The Impact

Abstract Background Based on national recommendations,1 Beth Israel Lahey Health (BILH) in Eastern Massachusetts (MA) prioritized vulnerable communities in our distribution of COVID-19 vaccines. We hypothesized that creating prioritized access to appointments for patients in these communities would increase the likelihood vaccination. Methods The BILH health system sent vaccine invitations first to patients of two clinics in vulnerable neighborhoods in Boston (Wave 1), followed by other patients from vulnerable communities (Wave 2) up to 1 day later, and then by all other patients (Wave 3) after up to 1 more day later. To identify whether early access/prioritization increased the likelihood of receipt of vaccine at any site or a vaccine at a BILH clinic, we compared patients in Wave 1 in a single community with high cumulative incidence of COVID-19 (Dorchester) to patients in Wave 2 during a period of limited vaccine access, 1/27/21-2/24/21. Each wave was modeled using logistic regression, adjusted for language and race. By taking the difference between these two differences, we are left with the impact of early vaccination invitation in Wave 1 for a subset of our most vulnerable patients (termed difference-in-differences; Stata SE 16.0). Results In our study of Waves 1 and 2, we offered vaccinations to 24,410 patients. Of those, 6,712 (27.5%) scheduled the vaccine at BILH (Table 1). Patients in Wave 1 were much more likely to be vaccinated at BILH than patients in Wave 2. Patients offered the vaccine in Wave 1 and living in Dorchester were 1.7 percentage points more likely to be vaccinated at all (p=0.445) and 9.4 percentage points more likely to be vaccinated at BILH than another site in MA (p-value = 0.001), relative to patients living outside of Dorchester and offered the vaccine in Wave 2 (Table 2). The coefficient of interest is on Wave1*Dorchester, 0.094. This indicates that residents of Dorchester who were offered the vaccine in Wave 1 were 9.4 percentage points more likely to receive the vaccine at BILH, given that they were vaccinated, relative to patients living outside of Dorchester and offered the vaccine in Wave 2. Conclusion Patients residing in an urban community given prioritized access to vaccination had a higher likelihood of vaccination at our health system, given that they were vaccinated, than patients in other urban communities without prioritized access. We provide an example of a successful effort to move towards equity in access to COVID-19- vaccines, in contrast to larger national trends.2,3 Health systems can use a prioritization approach to improve vaccination equity. Disclosures All Authors: No reported disclosures

scholarly journals The Impact of Tariff Reforms on Income Distribution in Pakistan: A CGE-based Analysis

1999 ◽  
Vol 38 (4II) ◽  
pp. 789-804 ◽  
Author(s):  
Rehana Siddiqui ◽  
Rizwana Siddiqui ◽  
Zafar Iqbal
Keyword(s):  
Developing Countries ◽  
Income Distribution ◽  
Computable General Equilibrium ◽  
Asset Price ◽  
Relative Price ◽  
Structural Reforms ◽  
Policy Reforms ◽  
Price Effect ◽  
Cge Models ◽  
The Impact

Like most developing countries, Pakistan has undertaken drastic economic policy reforms since the mid-1980s. Under these structural reforms there is a general shift away from quantitative restrictions and price controls towards liberalisation and privatisation. The empirical studies1 analysing the impact of the reforms report mixed results. Economy wide framework like Computable General Equilibrium (CGE), based on the social accounting matrix, is well suited to analysing the effect of these structural reforms. The CGE models are developed to capture the medium to long-run effects through which adjustment programmes affect income distribution. These models are often used to evaluate the effects of trade and tax policies on income distribution in developing countries. There are three interacting channels through which these adjustment policies affect income distribution, viz., the relative price effect, the asset price effect and the shift in portfolio. However, in this study, we are analysing the effect of changes in relative prices only.

The impact of microfinance programs on monetary poverty reduction

2019 ◽  
Vol 16 (1) ◽  
pp. 30-43
Author(s):  
Mustafa Hassan Elsafi ◽  
Elsadig Musa Ahmed ◽  
Santhi Ramanathan
Keyword(s):  
Poverty Reduction ◽  
Poverty Line ◽  
Control Group ◽  
Microfinance Institutions ◽  
Content Type ◽  
Welfare Indicators ◽  
The Difference ◽  
Loan Size ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of microfinance programs sponsored by Sudanese microfinance institutions (SMFIs) on monetary poverty reduction in Sudan where poverty is widely spread. Design/methodology/approach The study adopted the control group approach, where income and expenditure are taken as welfare indicators. The updated World Bank’s international poverty line of 1.90 per person per day was adopted to separate the poor from non-poor. The data were collected by the means of a questionnaire distributed to a random sample of beneficiaries in the institution under study. The study adapted the Foster, Greer and Thorbecke (FGT) model to evaluate the role of microfinance programs in poverty reduction. Furthermore, to gain more insight into the impact of the program, a preliminary analysis was conducted using the independent-samples t-test to examine the difference in the welfare indicators for the sample of the control group and treatment group as well as that of the small loan group and micro-loan group. Findings The findings show that the microfinance program provided by SMFIs has reduced the monetary poverty among the participants. The results also reveal that beneficiaries who had received a larger volume of loan were noted lesser poverty than those who had received very small loan size. Moreover, the results demonstrate that poverty indices based on expenditure as a welfare indicator are far lower than those based on income for both groups. Originality/value This study contributes to the available literature by filling the gaps through including income and expenditure as monetary variables, which included separately in previous studies adopted the FGT model in the area of microfinance, in addition to exploring the role of loan size in the effect of microfinance on poverty reduction.

scholarly journals Can an Ageing Scotland Afford Independence?

2014 ◽  
Vol 227 ◽  
pp. R32-R39 ◽  
Author(s):  
Katerina Lisenkova ◽  
Marcel Mérette
Keyword(s):  
Computable General Equilibrium ◽  
Population Ageing ◽  
Status Quo ◽  
Ageing Population ◽  
Additional Increase ◽  
Tax Rate ◽  
Percentage Points ◽  
The Status ◽  
The Difference ◽  
The Uk

The aim and scope of this paper is to isolate the effects of population ageing in the context of potential Scottish independence. A dynamic multiregional Overlapping Generations Computable General Equilibrium (OLG-CGE) model is used to evaluate the two scenarios. The status quo scenario assumes that Scotland stays part of the UK and all government expenditures associated with its ageing population are funded on a UK-wide basis. In the independence scenario, Scotland and the rest of the UK pay for the growing demands of their ageing populations independently. The comparison suggests that Scotland is worse off in the case of independence. The effective labour income tax rate in the independence scenario has to increase further compared with the status quo scenario. The additional increase reaches its maximum in 2035 at 1.4 percentage points. The additional rise in the tax rate is non-negligible, but is much smaller than the population ageing effect (status quo scenario) which generates an increase of about 8.5 percentage points by 2060. The difference for government finances between the status quo and independence scenarios is thus relatively small.

scholarly journals ANALISIS FAKTOR KEMISKINAN KABUPATEN/KOTA DI KALIMANTAN, SULAWESI, BALI DAN NUSA TENGGARA

2021 ◽  
Vol 35 (2) ◽  
pp. 107-116
Author(s):  
Derita Lamtiar Pasaribu ◽  
Fajar Restuhadi ◽  
Evy Maharani
Keyword(s):  
Data Collection ◽  
Poverty Reduction ◽  
Principal Component ◽  
Population Data ◽  
Poverty Line ◽  
Poverty Rate ◽  
The Difference ◽  
Using Data ◽  
Main Components ◽  
Regional Clustering

Poverty alleviation planning should be started with data analysis in advance. One of the poverty data sources available in Indonesia is the Regency/City Poverty Data and Information Catalog, published by the Central Statistics Agency (BPS). From the catalog published in the time series can be observed where the poverty rate decreases along with the increasing budget for poverty reduction. In 2005, there were 35.1 million people (15.97%) of the country living under the poverty line and in 2015 reduced to be 28.51 million people which equaled 11.13% of the total population of Indonesia. This research aims to analyze poverty factors in 175 regents and cities located on the islands of Kalimantan, Sulawesi, Bali, and Nusa Tenggara using data from BPS. The principal component analysis (PCA) is the main analytical instrument that was used in this research. The poverty data from BPS has 9 aspects/factors and PCA analysis results in the same number of main components/factors. The difference in the result of these two observations is seen in variable members in each component that could be occurred because BPS conducts grouping of variables before the population data collection gets started, while PCA classifies variables based on data that has been collected or after the population data collection is completed. PCA results can be utilized for further research purposes such as regional clustering, implementation of evaluation, and planning. Meanwhile, the BPS poverty aspect displayed in a more structured arrangement, makes it is easier to observe for publications and more practical to use when conducting population data collection.

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