Measuring the Pro-Poorness of Income Growth within an Elasticity Framework

Poverty reduction has become a fundamental objective of development, and therefore a metric for assessing the effectiveness of various interventions. Economic growth can be a powerful instrument of income poverty reduction. This creates a need for meaningful ways of assessing the poverty impact of g...

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Main Authors: Essama-Nssah, B., Lambert, Peter J.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2006/10/7126791/measuring-pro-poorness-income-growth-within-elasticity-framework
http://hdl.handle.net/10986/9018
id okr-10986-9018
recordtype oai_dc
spelling okr-10986-90182021-04-23T14:02:41Z Measuring the Pro-Poorness of Income Growth within an Elasticity Framework Essama-Nssah, B. Lambert, Peter J. ABSOLUTE POVERTY ABSOLUTE POVERTY LINE ABSOLUTE REDUCTION ABSOLUTE VALUE ADJUSTMENT PERIOD AGGREGATE GROWTH AGGREGATE INCOME AGGREGATE MEASURE AGGREGATE POVERTY CONSUMER PRICE INDEX COUNTERFACTUAL DENSITY FUNCTION DEVELOPING WORLD DEVELOPMENT GOALS DEVELOPMENT POLICY DISTRIBUTION FUNCTION DISTRIBUTIONAL CHANGES DISTRIBUTIONAL COMPONENT DISTRIBUTIONAL EFFECT DISTRIBUTIONAL IMPACT ECONOMIC GROWTH EMPIRICAL SECTION EQUIPROPORTIONATE INCOME EXTERNAL SHOCKS FINANCIAL CRISIS GLOBAL POVERTY GROWTH GROWTH ELASTICITY GROWTH PATTERN GROWTH PROCESS GROWTH RATE GROWTH RATES HEAD COUNT RATIO HEADCOUNT POVERTY HEADCOUNT RATIO HOUSEHOLD SURVEYS INCIDENCE OF POVERTY INCOME INCOME CHANGE INCOME COMPONENTS INCOME DISTRIBUTION INCOME GROWTH INCOME LEVEL INCOME POVERTY INDIVIDUAL INCOMES INEQUALITY INTEREST RATES INTERNATIONAL COMMUNITY LEVEL OF POVERTY MACROECONOMIC STABILITY MAXIMUM INCOME MEAN GROWTH MEAN INCOME MILLENNIUM DEVELOPMENT GOALS NEGATIVE IMPACT NON-INCOME DIMENSIONS OBSERVED CHANGE OBSERVED CHANGES OBSERVED GROWTH OBSERVED GROWTH RATE OBSERVED POVERTY REDUCTION PENSIONS PER CAPITA EXPENDITURE PER CAPITA INCOME POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POPULATION POPULATION GROWTH POPULATION SIZE POSITIVE GROWTH POVERTY POVERTY ANALYSIS POVERTY GAP INDEX POVERTY IMPACT POVERTY IMPACT OF GROWTH POVERTY INCIDENCE POVERTY INCREASES POVERTY INDEX POVERTY INDICES POVERTY LINE POVERTY MEASURE POVERTY MEASURES POVERTY OUTCOMES POVERTY REDUCTION POVERTY-REDUCING GROWTH PRO-POOR PRO-POOR GROWTH PROGRESS PURCHASING POWER PURCHASING POWER PARITY RATE OF GROWTH REDUCED POVERTY REDUCTION IN POVERTY RELATIVE GAINS RESPECT RICHER COUNTRIES SIGNIFICANT REDUCTION SQUARED POVERTY GAP UNEMPLOYMENT VULNERABILITY WELFARE LEVEL Poverty reduction has become a fundamental objective of development, and therefore a metric for assessing the effectiveness of various interventions. Economic growth can be a powerful instrument of income poverty reduction. This creates a need for meaningful ways of assessing the poverty impact of growth. This paper follows the elasticity approach to propose a measure of pro-poorness defined as a weighted average of the deviation of a growth pattern from the benchmark case. The measure can help assess pro-poorness both in terms of aggregate poverty measures, which are members of the additively separable class, and at percentiles. It also lends itself to a decomposition procedure, whereby the overall pattern of income growth can be unbundled, and the contributions of income components to overall pro-poorness identified. An application to data for Indonesia in the 1990s reveals that the amount of poverty reduction achieved over that period remains far below what would have been achieved under distributional neutrality. This conclusion is robust to the choice of a poverty measure among members of the additively separable class, and can be tracked back to changes in expenditure components. 2012-06-26T14:32:18Z 2012-06-26T14:32:18Z 2006-10 http://documents.worldbank.org/curated/en/2006/10/7126791/measuring-pro-poorness-income-growth-within-elasticity-framework http://hdl.handle.net/10986/9018 English en_US Policy Research Working Paper; No. 4035 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
ABSOLUTE REDUCTION
ABSOLUTE VALUE
ADJUSTMENT PERIOD
AGGREGATE GROWTH
AGGREGATE INCOME
AGGREGATE MEASURE
AGGREGATE POVERTY
CONSUMER PRICE INDEX
COUNTERFACTUAL
DENSITY FUNCTION
DEVELOPING WORLD
DEVELOPMENT GOALS
DEVELOPMENT POLICY
DISTRIBUTION FUNCTION
DISTRIBUTIONAL CHANGES
DISTRIBUTIONAL COMPONENT
DISTRIBUTIONAL EFFECT
DISTRIBUTIONAL IMPACT
ECONOMIC GROWTH
EMPIRICAL SECTION
EQUIPROPORTIONATE INCOME
EXTERNAL SHOCKS
FINANCIAL CRISIS
GLOBAL POVERTY
GROWTH
GROWTH ELASTICITY
GROWTH PATTERN
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEAD COUNT RATIO
HEADCOUNT POVERTY
HEADCOUNT RATIO
HOUSEHOLD SURVEYS
INCIDENCE OF POVERTY
INCOME
INCOME CHANGE
INCOME COMPONENTS
INCOME DISTRIBUTION
INCOME GROWTH
INCOME LEVEL
INCOME POVERTY
INDIVIDUAL INCOMES
INEQUALITY
INTEREST RATES
INTERNATIONAL COMMUNITY
LEVEL OF POVERTY
MACROECONOMIC STABILITY
MAXIMUM INCOME
MEAN GROWTH
MEAN INCOME
MILLENNIUM DEVELOPMENT GOALS
NEGATIVE IMPACT
NON-INCOME DIMENSIONS
OBSERVED CHANGE
OBSERVED CHANGES
OBSERVED GROWTH
OBSERVED GROWTH RATE
OBSERVED POVERTY REDUCTION
PENSIONS
PER CAPITA EXPENDITURE
PER CAPITA INCOME
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR POPULATION
POPULATION GROWTH
POPULATION SIZE
POSITIVE GROWTH
POVERTY
POVERTY ANALYSIS
POVERTY GAP INDEX
POVERTY IMPACT
POVERTY IMPACT OF GROWTH
POVERTY INCIDENCE
POVERTY INCREASES
POVERTY INDEX
POVERTY INDICES
POVERTY LINE
POVERTY MEASURE
POVERTY MEASURES
POVERTY OUTCOMES
POVERTY REDUCTION
POVERTY-REDUCING GROWTH
PRO-POOR
PRO-POOR GROWTH
PROGRESS
PURCHASING POWER
PURCHASING POWER PARITY
RATE OF GROWTH
REDUCED POVERTY
REDUCTION IN POVERTY
RELATIVE GAINS
RESPECT
RICHER COUNTRIES
SIGNIFICANT REDUCTION
SQUARED POVERTY GAP
UNEMPLOYMENT
VULNERABILITY
WELFARE LEVEL
spellingShingle ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
ABSOLUTE REDUCTION
ABSOLUTE VALUE
ADJUSTMENT PERIOD
AGGREGATE GROWTH
AGGREGATE INCOME
AGGREGATE MEASURE
AGGREGATE POVERTY
CONSUMER PRICE INDEX
COUNTERFACTUAL
DENSITY FUNCTION
DEVELOPING WORLD
DEVELOPMENT GOALS
DEVELOPMENT POLICY
DISTRIBUTION FUNCTION
DISTRIBUTIONAL CHANGES
DISTRIBUTIONAL COMPONENT
DISTRIBUTIONAL EFFECT
DISTRIBUTIONAL IMPACT
ECONOMIC GROWTH
EMPIRICAL SECTION
EQUIPROPORTIONATE INCOME
EXTERNAL SHOCKS
FINANCIAL CRISIS
GLOBAL POVERTY
GROWTH
GROWTH ELASTICITY
GROWTH PATTERN
GROWTH PROCESS
GROWTH RATE
GROWTH RATES
HEAD COUNT RATIO
HEADCOUNT POVERTY
HEADCOUNT RATIO
HOUSEHOLD SURVEYS
INCIDENCE OF POVERTY
INCOME
INCOME CHANGE
INCOME COMPONENTS
INCOME DISTRIBUTION
INCOME GROWTH
INCOME LEVEL
INCOME POVERTY
INDIVIDUAL INCOMES
INEQUALITY
INTEREST RATES
INTERNATIONAL COMMUNITY
LEVEL OF POVERTY
MACROECONOMIC STABILITY
MAXIMUM INCOME
MEAN GROWTH
MEAN INCOME
MILLENNIUM DEVELOPMENT GOALS
NEGATIVE IMPACT
NON-INCOME DIMENSIONS
OBSERVED CHANGE
OBSERVED CHANGES
OBSERVED GROWTH
OBSERVED GROWTH RATE
OBSERVED POVERTY REDUCTION
PENSIONS
PER CAPITA EXPENDITURE
PER CAPITA INCOME
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR POPULATION
POPULATION GROWTH
POPULATION SIZE
POSITIVE GROWTH
POVERTY
POVERTY ANALYSIS
POVERTY GAP INDEX
POVERTY IMPACT
POVERTY IMPACT OF GROWTH
POVERTY INCIDENCE
POVERTY INCREASES
POVERTY INDEX
POVERTY INDICES
POVERTY LINE
POVERTY MEASURE
POVERTY MEASURES
POVERTY OUTCOMES
POVERTY REDUCTION
POVERTY-REDUCING GROWTH
PRO-POOR
PRO-POOR GROWTH
PROGRESS
PURCHASING POWER
PURCHASING POWER PARITY
RATE OF GROWTH
REDUCED POVERTY
REDUCTION IN POVERTY
RELATIVE GAINS
RESPECT
RICHER COUNTRIES
SIGNIFICANT REDUCTION
SQUARED POVERTY GAP
UNEMPLOYMENT
VULNERABILITY
WELFARE LEVEL
Essama-Nssah, B.
Lambert, Peter J.
Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
relation Policy Research Working Paper; No. 4035
description Poverty reduction has become a fundamental objective of development, and therefore a metric for assessing the effectiveness of various interventions. Economic growth can be a powerful instrument of income poverty reduction. This creates a need for meaningful ways of assessing the poverty impact of growth. This paper follows the elasticity approach to propose a measure of pro-poorness defined as a weighted average of the deviation of a growth pattern from the benchmark case. The measure can help assess pro-poorness both in terms of aggregate poverty measures, which are members of the additively separable class, and at percentiles. It also lends itself to a decomposition procedure, whereby the overall pattern of income growth can be unbundled, and the contributions of income components to overall pro-poorness identified. An application to data for Indonesia in the 1990s reveals that the amount of poverty reduction achieved over that period remains far below what would have been achieved under distributional neutrality. This conclusion is robust to the choice of a poverty measure among members of the additively separable class, and can be tracked back to changes in expenditure components.
format Publications & Research :: Policy Research Working Paper
author Essama-Nssah, B.
Lambert, Peter J.
author_facet Essama-Nssah, B.
Lambert, Peter J.
author_sort Essama-Nssah, B.
title Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
title_short Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
title_full Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
title_fullStr Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
title_full_unstemmed Measuring the Pro-Poorness of Income Growth within an Elasticity Framework
title_sort measuring the pro-poorness of income growth within an elasticity framework
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2006/10/7126791/measuring-pro-poorness-income-growth-within-elasticity-framework
http://hdl.handle.net/10986/9018
_version_ 1764406507152080896