Pro-Poor Growth and the Lognormal Distribution

2011 ◽  
Author(s):  
Peter J. Lambert
Keyword(s):  
Growth Pattern ◽  
Lognormal Distribution ◽  
Income Growth ◽  
Poor Growth ◽  
Income Distributions

A widely accepted criterion for the pro-poorness of an income growth pattern is that it should reduce a (chosen) measure of poverty by \textit{more} than if all incomes were growing equi-proportionately. Inequality reduction is not generally seen as either necessary or sufficient for pro-poorness. As empirical income distributions fit well to the lognormal form, lognormality has sometimes been assumed in order to determine analytically the poverty effects of income growth. We show that in a lognormal world, growth is pro-poor in the above sense, if and only if it is inequality-reducing. It follows that lognormality may not be a good paradigm by means of which to examine pro-poorness issues. In contrast, some popular 3-parameter forms offer the ability to conduct nuanced investigation of the pro-poorness growth-inequality nexus.

The shape of income distribution and decomposition of the changes in income inequality in India

2019 ◽  
Vol 46 (3) ◽  
pp. 760-776 ◽  
Author(s):  
Aswini Kumar Mishra ◽  
Anil Kumar ◽  
Abhishek Sinha
Keyword(s):  
Income Inequality ◽  
Research Work ◽  
Income Growth ◽  
Analysis Tool ◽  
Distribution Analysis ◽  
Content Type ◽  
Income Distributions ◽  
The Rich ◽  
New Evidence ◽  
Practical Implications

Purpose Though Indian economy since 1980s has expanded very rapidly, yet the benefits of growth remain very unequally distributed. The purpose of this paper is to provide new evidence about the shape, intensity and decomposition of inequality change between 2005 and 2012. The authors find that Gini, as a measure of income inequality, has increased irrespective of geographic regions. Design/methodology/approach Based on a recent distribution analysis tool, “ABG,” the paper focuses on local inequality, and summarizes the shape of inequality in terms of three inequality parameters (α, β and γ) to examine how the income distributions have changed over time. Here, the central coefficient (α) measures inequality at the median level, with adjustment parameters at the top (β) and bottom (γ). Findings The results reveal that at the middle of distribution (α), there is almost the same inequality in both the periods, but the coefficients on the curvature parameters β and γ show that there is increasing inequality in the subsequent period. Finally, an analysis of decomposition of inequality change suggests that though income growth was progressive, however, this equalizing effect was more than offset by the disequalizing effect of income reranking. Research limitations/implications This paper shows how it can be possible both for “the poor” to fare badly relatively to “the rich” and for income growth to be pro-poor. Practical implications This paper stresses the significance of inequality reduction. Social implications Inequality reduction is very much imperative in ending poverty and boosting shared prosperity. Originality/value Perhaps, this research work is first of its kind to examine the shape and decomposition of change in income inequality in India in recent years.

scholarly journals Poverty, Income Distribution, and Government Policy that Pro-Poor in Indonesia year 2009-2016

2017 ◽  
Vol 1 (2) ◽  
pp. 219
Author(s):  
Hayu Fadlun Widyasthika ◽  
Azwardi Azwardi ◽  
Tatang Abdul Madjid
Keyword(s):  
Economic Growth ◽  
Urban Area ◽  
Government Policy ◽  
Income Growth ◽  
Poor Growth ◽  
The Poor ◽  
Rural And Urban ◽  
Economic Survey ◽  
Rural And Urban Area ◽  
Distribution Of Income

This study aims to determine the effect of growth and distribution on poverty change as well as to analyse whether expenditure growth has given the benefits to the poor and non-poor in urban and rural area. The data used are raw data from total household consumption obtained from National Socio-Economic Survey for the period of 2009 to 2016. Poverty decomposition is used to see the effect of income growth and distribution on the poverty change. Furthermore, Poverty Equivalent Growth Rate (PEGR) supported by Growth Incidence Curve (GIC) is used to determine whether the benefit of economic growth is enjoyed more by the poor compared to pro-poor growth or not. The results show that income growth influences the decrease in poverty both in rural and urban area in Indonesia, during 2009-2016, 2009-2014 and 2014-2016. Conversely, the distribution of income increases the poverty in both areas during the periods. Inequality of income seems to give a strong influence so that the economic growth has not been a pro-poor both in rural and urban area of Indonesia during 2009-2016, 2009-2014 and 2009-2016. 

scholarly journals Pathways toward Inclusive Income Growth: A Comparative Decomposition of National Growth Profiles

2021 ◽  
pp. 000312242110548
Author(s):  
Zachary J. Parolin ◽  
Janet C. Gornick
Keyword(s):  
United States ◽  
The United States ◽  
Income Growth ◽  
Inclusive Growth ◽  
Market Institutions ◽  
Transfer Policy ◽  
Income Distributions ◽  
Growth Profiles ◽  
Economic Perspectives ◽  
National Growth

Despite rising interest in income inequality, scholars remain divided over the mechanisms underlying inclusive income growth and how these mechanisms vary across countries. This study introduces the concept of national growth profiles, that is, the additive contribution of changes in taxes, transfers, composition, and other factors including market institutions to changes across a country’s income distribution. We present a decomposition framework to measure national growth profiles for eight high-income countries from the 1980s to 2010s. Our findings adjudicate competing sociological and economic perspectives on rising inequality. First, we find that policy-driven changes in taxes and transfers are the dominant drivers of inclusive growth at the tails of the income distributions. Second, rising educational attainment contributes most to income growth across the distribution, but consistently contributes to less-inclusive growth. When changes in education are considered, changes in assortative mating and single parenthood have little consequence for changes in inequality. Third, changes to other factors including market institutions increased inequality in countries such as the United States, but less so in France and Germany. Had the United States matched the changes to Dutch tax policy, Danish transfer policy, or other factors of most other countries, it could have achieved more inclusive income growth than observed.

scholarly journals Pathways toward Inclusive Income Growth: A Comparative Decomposition of National Growth Profiles

2021 ◽  
Author(s):  
Zachary Parolin ◽  
Janet C. Gornick
Keyword(s):  
Income Growth ◽  
Inclusive Growth ◽  
Market Institutions ◽  
Transfer Policy ◽  
Working Paper ◽  
Income Distributions ◽  
Growth Profiles ◽  
Economic Perspectives ◽  
The U.S ◽  
National Growth

Despite rising interest in income inequality, scholars remain divided over the mechanisms underlying inclusive income growth and how these mechanisms vary across countries. This study introduces the concept of national growth profiles, the additive contribution of changes in taxes, transfers, composition, and other factors including market institutions to changes across a country’s income distribution. We present a decomposition framework to measure national growth profiles for eight high-income countries from the 1980–2010s. Our findings adjudicate competing sociological and economic perspectives on rising inequality. First, we find that policy-driven changes in taxes and transfers are the dominant drivers of inclusive growth at the tails of the income distributions. Second, rising educational attainment contributes most to income growth across the distribution, but consistently contributes to less-inclusive growth. When changes in education are considered, changes in assortative mating and single parenthood have little consequence for changes in inequality. Third, changes to other factors including market institutions increased inequality in countries such as the U.S., but less so in France and Germany. Had the U.S. matched the changes to Dutch tax policy, Danish transfer policy, or other factors of most other countries, it could have achieved more inclusive income growth than observed. (Stone Center on Socio-Economic Inequality Working Paper)

Regional and Geographic Features of pro-poor growth in Africa

2020 ◽  
Author(s):  
Jaromír Hamáček ◽  
Barbora Frličková
Keyword(s):  
Income Inequality ◽  
Population Density ◽  
Income Growth ◽  
Income Poverty ◽  
African Countries ◽  
Poor Growth ◽  
Geographic Factors ◽  
Western Africa ◽  
The World ◽  
Income Data

The paper focuses on regional and geographic features of pro-poor growth in African countries. The concept of pro-poor growth interconnects and examines mutual relationships between income growth, income poverty and income inequality. Using the World Bank’s income data, we calculate and interpret indicators of pro-poor growth for individual African countries. Then we analyze the results in terms of African regionalization and we investigate possible associations between pro-poor growth categories and selected geographic factors such as location, population size or population density. We show that higher pro-poorness of growth is typical for countries of Northern and Western Africa. The results also indicate that some of the geographic factors are significantly associated with pro-poor growth across African countries.

scholarly journals Application of the L-Moment Method when Modelling the Income Distribution in the Czech Republic

2016 ◽  
Vol 41 (2) ◽  
Author(s):  
Diana Bílková ◽  
Ivana Malá
Keyword(s):  
Czech Republic ◽  
Maximum Likelihood ◽  
Lognormal Distribution ◽  
Moment Method ◽  
Annual Income ◽  
The Czech Republic ◽  
Income Distributions ◽  
L Moments ◽  
Per Capita ◽  
The Eu

This paper deals with modelling income distributions in the Czech Republic in 1992–2007. The net annual income per capita for Czech households is evaluated from data based on the microcensus and the EU-SILC 2005–2008. For all analysed years the distribution of incomes was estimated in the whole sample as well as in the subgroup of households, whose heads are physicists (or experts in related sciences), architects and engineers. Inthe paper the three-parametric lognormal distribution is used as a model. Unknownparameters are estimated with the use of four methods – those of maximum likelihood, quantiles, moments and L-moments.

scholarly journals Statistical Modeling of COVID-19 Pandemic Stages Worldwide

2020 ◽  
Author(s):  
Ranadeep Datta ◽  
Prabhat Kumar Trivedi ◽  
Ayush Kumawat ◽  
Rahul Kumar ◽  
Isha Bhardwaj ◽  
...  
Keyword(s):  
Infectious Disease ◽  
Time Series ◽  
New Zealand ◽  
Growth Pattern ◽  
Rapid Growth ◽  
Lognormal Distribution ◽  
Structural Break ◽  
Growth Behaviour ◽  
Time Period ◽  
Time Form

COVID-19 is an infectious disease, growth of which depends upon the linked stages of the epidemic, the average number of people one person can infect and the time it takes for those people to become infectious themselves. We have studied the COVID-19 time series to understand the growth behaviour of COVID-19 cases series. A structural break occurs in the COVID-19 series at the change time form one stage to another. We have performed the structural break analysis of data available for 207 countries till April 20, 2020. There are 42 countries which have recorded five breaks in COVID cases series. This means that these countries are in the sixth stage of growth transmission and show a downward pattern in reporting in the daily cases, whereas countries with two and three breaks, record the rapid growth pattern in the daily cases. From this study, we conclude that the more the breaks in the series, there is more possibility to determine the constant or decreasing rate of daily cases. It is well fitted using lognormal distribution as this distribution is archived at its highest peak after some period and then suddenly it decreases at a longer time period. This can be seen in various countries like China, Australia, New Zealand and so on.

scholarly journals Poverty, Income Distribution, and Government Policy that Pro-Poor in Indonesia year 2009-2016

2017 ◽  
Vol 1 (2) ◽  
pp. 219
Author(s):  
Hayu Fadlun Widyasthika ◽  
Azwardi Azwardi ◽  
Tatang Abdul Madjid
Keyword(s):  
Economic Growth ◽  
Urban Area ◽  
Government Policy ◽  
Income Growth ◽  
Poor Growth ◽  
The Poor ◽  
Rural And Urban ◽  
Economic Survey ◽  
Rural And Urban Area ◽  
Distribution Of Income

This study aims to determine the effect of growth and distribution on poverty change as well as to analyse whether expenditure growth has given the benefits to the poor and non-poor in urban and rural area. The data used are raw data from total household consumption obtained from National Socio-Economic Survey for the period of 2009 to 2016. Poverty decomposition is used to see the effect of income growth and distribution on the poverty change. Furthermore, Poverty Equivalent Growth Rate (PEGR) supported by Growth Incidence Curve (GIC) is used to determine whether the benefit of economic growth is enjoyed more by the poor compared to pro-poor growth or not. The results show that income growth influences the decrease in poverty both in rural and urban area in Indonesia, during 2009-2016, 2009-2014 and 2014-2016. Conversely, the distribution of income increases the poverty in both areas during the periods. Inequality of income seems to give a strong influence so that the economic growth has not been a pro-poor both in rural and urban area of Indonesia during 2009-2016, 2009-2014 and 2009-2016. 

Sign in / Sign up

Export Citation Format

Share Document