scholarly journals Testing for Stochastic Dominance up to a Common Relative Poverty Line

Econometrics ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 5
Author(s):  
Tahsin Mehdi

Although a wide array of stochastic dominance tests exist for poverty measurement and identification, they assume the income distributions have independent poverty lines or a common absolute (fixed) poverty line. We propose a stochastic dominance test for comparing income distributions up to a common relative poverty line (i.e., some fraction of the pooled median). A Monte Carlo study demonstrates its superior performance over existing methods in terms of power. The test is then applied to some Canadian household survey data for illustration.

Author(s):  
Suman Seth ◽  
Gaston Yalonetzky

Abstract The challenges associated with poverty measurement using a cardinal variable have received much attention over the past four decades, but there is a dearth of literature on how to meaningfully assess poverty with an ordinal variable. This article proposes a class of simple, intuitive, and policy-relevant poverty measures for ordinal variables. The measures are sensitive to the depth of deprivations, unlike the headcount ratio. Moreover, under appropriate restrictions, the measures ensure that priority is given to the poorest among the poor when targeting, monitoring, and evaluating poverty alleviation programs. To assess the robustness of poverty comparisons to alternative choices of parameters, the article develops various stochastic dominance tests (some of which are novel contributions to the stochastic dominance literature). The empirical illustration documenting changes in sanitation deprivation in Bangladesh showcases the measures’ ability to identify instances in which overall sanitation deprivation improved while leaving the poorest behind.


Author(s):  
Phindile Mdluli

Poverty remains a critical and complex phenomenon in developing countries, South Africa included. Over the years, poverty has escalated significantly, particularly in Africa, while it has declined in most developed regions. The worsening statistics in Africa have raised concerns of a lack of understanding of poverty among policymakers and governments. In South Africa, poverty has been increasing, with more than 50 percent of households living in poverty. Additionally, approximately 26 percent of females live in extreme poverty, while at the same time the country is experiencing a growing trend of female-headed households continually identified as vulnerable to the indignities of poverty compared to male-headed households. Although poverty in South Africa has been studied extensively, existing literature shows that it is still a debatable topic, since the dynamics have not improved much, but rather worsened in recent years particularly post-apartheid. Using the 2018 general household survey data with a sample of 19 219 observations collected by Statistics South Africa, the primary objective of the study is to examine the determinants of poverty among female-headed households in South Africa. The study uses the following statistical methods: descriptive statistics, cross-tabulations and a binary logistic regression. The estimated results show that factors such as education level, employment status, age, gender, race, household size and marital status determine the poverty status of female-headed households. Females experience higher levels of poverty when compared to their male counterpart using the upper bound poverty line. Keywords: Poverty, household, female-headed household, male-headed households, South Africa


Author(s):  
Kamalbek Karymshakov ◽  
Raziya Abdiyeva ◽  
Burulcha Sulaimanova

This paper aims to evaluate the impact of internal and international remittances on poverty in Kyrgyzstan using household survey data for 2011. Following Adams and Cuecuecha (2010) two-stage multinomial logit model suggested by Bourguigon et al. (2007) is used. Methodology use instrumental variables to solve the selectivity bias issue and then estimates counterfactual expenditure of households. Households are classified as international remittance receiving, internal remittance receiving and remittance non-receiving. For evaluation of remittances impact on poverty counterfactual expenditures are compared with observed actual expenditure by household types. Expenditure level for 2011 for definition of national poverty line in Kyrgyzstan is used as the benchmark for poverty impact of remittances. Results show that international remittances considerably decrease poverty level. Per capita expenditure of international remittance receiving households would be lower than expenditure of poverty line for 2011, if they did not receive remittances. Internal remittance receiving households also would decrease expenditures, but it would still be higher than poverty line.


2009 ◽  
pp. 24
Author(s):  
Eugenio Peluso ◽  
Alain Trannoy

We investigate under which conditions it is possible to infer the evolution of poverty at the individual level from the knowledge of poverty among households. Poverty measurement is approached by the poverty orderings introduced by Foster and Shorrocks (1988). The analysis is based on a reduced form of household bargaining (Peluso and Trannoy, 2007) and provides results in terms of preservation of poverty orderings. We point out the main analogies and differences between inequality and poverty assessment, expressing them in terms of empirically testable conditions. In particular, knowing the change in poverty at the household level is not sufficient to deduce a similar change in poverty at the individual level. We need to know the change in the household income distributions far beyond their poverty line. The focus axiom does not hold in this context.


2020 ◽  
Vol 110 ◽  
pp. 457-462
Author(s):  
Victoria Baranov ◽  
Ralph De Haas ◽  
Pauline Grosjean

We merge data on spatial variation in the presence of convicts across eighteenth and nineteenth century Australia with results from the country's 2017 poll on same-sex marriage and with household survey data. These combined data allow us to identify the lasting impact of convict colonization on social norms about marriage. We find that in areas with higher historical convict concentrations, more Australians recently voted in favor of same-sex marriage and hold liberal views about marriage more generally. Our results highlight how founder populations can have lasting effects on locally held social norms.


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