This document presents a framework for measuring intertemporal pro-poorness that accounts for individual income mobility over multiple time periods. It focuses on measuring poverty levels within and across individuals over their lifetimes, rather than just comparing aggregate cross-sectional poverty between two time periods. The proposed indices decompose the effects of growth on poverty into anonymous, mobility, and re-ranking components. An empirical application using EU-SILC data from 23 European countries between 2006-2009 finds the degree of intertemporal pro-poorness varied significantly across countries during the early phase of the economic crisis.
Leading in VUCA: Principals for Emerging Leaders Eva McLellan
Many new graduates will be walking into industries and organizations that are in the throes of VUCA (volatility, uncertainty, complexity and ambiguity). The leading expertise and perspective from tmany graduate programs will be a brilliant foundation. At the same time VUCA requires new attitudes and new skills, many of which are non-traditional and some of which are downright counter-intuitive. In this presentation I share a set of principles for thriving in the new VUCA-based healthcare environment that she has observed among the strongest and most inspiring leaders.
ECON 22134. Poverty and InequalityMeasuring povertyTo .docxjack60216
ECON 2213
4. Poverty and Inequality
Measuring poverty
To measure poverty, we first need to decide on a poverty line, such that those below it are considered poor. We can use an absolute poverty line (e.g., the World Bank’s $1 or $2 per day poverty line) or a relative poverty line (e.g., half of median income).
The most common way to measure poverty is to use the poverty rate or headcount ratio: this is the share of the population below the poverty line.
Measuring poverty
The poverty rate is simple and easy to understand, but has weaknesses.
First, the poverty rate does not indicate the depth or intensity of poverty, i.e., how far below the poverty line poor people are.
Second, the poverty rate does not change if people below the poverty line become poorer.
These weaknesses are addressed with the poverty gap. This adds up the extent to which individuals on average fall below the poverty line and expresses it as a percentage of the poverty line.
Measuring poverty
The squared poverty gap (or poverty severity index) takes into account inequality among the poor. This is a weighted sum of poverty gaps, where the weights are the poverty gaps themselves (e.g., a poverty gap of 10% of the poverty line gets a weight of 10%, a poverty gap of 50% of the poverty line gets a weight of 50%, etc.), thereby putting more weight on individuals who are far below the poverty line.
Measuring poverty
In Canada, we measure poverty based on a person’s or household’s income. In low-income countries, it may be better to measure poverty based on consumption, as consumption may be more accurately measured, and many workers may receive in-kind income (e.g., food).
Other measures of well-being can be used, such as the Human Development Index, education, life expectancy, infant mortality, or Sen’s “capabilities” approach.
Measuring inequality
The Gini coefficient or Gini index is the most common measure of inequality. The Gini coefficient is a number between 0 (perfect equality) and 1 (perfect inequality).
A Gini is based on a Lorenz curve, which shows how much of a country’s income is received by various percentages of the population; Gini is the ratio of the area between the line of complete equality and the Lorenz curve to the area of the triangle between the line of complete equality and the axes.
The formula for the Gini index is:
Measuring inequality
Other ways to measure inequality include the range (top earner minus bottom earner), the ratio (top earner divided by bottom earner), the coefficient of variation (standard deviation divided by mean), and the Theil index, which is one of a set of generalized entropy measures.
The Theil index has a strong advantage over the Gini, as it is decomposable into between-group and within-group inequality.
The formula for the Theil T index is:
Measuring inequality
Inequality can be measured:
Within a household.
Between households.
Within a village.
Between villages.
Within ...
Leading in VUCA: Principals for Emerging Leaders Eva McLellan
Many new graduates will be walking into industries and organizations that are in the throes of VUCA (volatility, uncertainty, complexity and ambiguity). The leading expertise and perspective from tmany graduate programs will be a brilliant foundation. At the same time VUCA requires new attitudes and new skills, many of which are non-traditional and some of which are downright counter-intuitive. In this presentation I share a set of principles for thriving in the new VUCA-based healthcare environment that she has observed among the strongest and most inspiring leaders.
ECON 22134. Poverty and InequalityMeasuring povertyTo .docxjack60216
ECON 2213
4. Poverty and Inequality
Measuring poverty
To measure poverty, we first need to decide on a poverty line, such that those below it are considered poor. We can use an absolute poverty line (e.g., the World Bank’s $1 or $2 per day poverty line) or a relative poverty line (e.g., half of median income).
The most common way to measure poverty is to use the poverty rate or headcount ratio: this is the share of the population below the poverty line.
Measuring poverty
The poverty rate is simple and easy to understand, but has weaknesses.
First, the poverty rate does not indicate the depth or intensity of poverty, i.e., how far below the poverty line poor people are.
Second, the poverty rate does not change if people below the poverty line become poorer.
These weaknesses are addressed with the poverty gap. This adds up the extent to which individuals on average fall below the poverty line and expresses it as a percentage of the poverty line.
Measuring poverty
The squared poverty gap (or poverty severity index) takes into account inequality among the poor. This is a weighted sum of poverty gaps, where the weights are the poverty gaps themselves (e.g., a poverty gap of 10% of the poverty line gets a weight of 10%, a poverty gap of 50% of the poverty line gets a weight of 50%, etc.), thereby putting more weight on individuals who are far below the poverty line.
Measuring poverty
In Canada, we measure poverty based on a person’s or household’s income. In low-income countries, it may be better to measure poverty based on consumption, as consumption may be more accurately measured, and many workers may receive in-kind income (e.g., food).
Other measures of well-being can be used, such as the Human Development Index, education, life expectancy, infant mortality, or Sen’s “capabilities” approach.
Measuring inequality
The Gini coefficient or Gini index is the most common measure of inequality. The Gini coefficient is a number between 0 (perfect equality) and 1 (perfect inequality).
A Gini is based on a Lorenz curve, which shows how much of a country’s income is received by various percentages of the population; Gini is the ratio of the area between the line of complete equality and the Lorenz curve to the area of the triangle between the line of complete equality and the axes.
The formula for the Gini index is:
Measuring inequality
Other ways to measure inequality include the range (top earner minus bottom earner), the ratio (top earner divided by bottom earner), the coefficient of variation (standard deviation divided by mean), and the Theil index, which is one of a set of generalized entropy measures.
The Theil index has a strong advantage over the Gini, as it is decomposable into between-group and within-group inequality.
The formula for the Theil T index is:
Measuring inequality
Inequality can be measured:
Within a household.
Between households.
Within a village.
Between villages.
Within ...
The International Journal of Engineering & Science is aimed at providing a platform for researchers, engineers, scientists, or educators to publish their original research results, to exchange new ideas, to disseminate information in innovative designs, engineering experiences and technological skills. It is also the Journal's objective to promote engineering and technology education. All papers submitted to the Journal will be blind peer-reviewed. Only original articles will be published.
Addressing the political economy of conditional cash transfer as a poverty re...AJHSSR Journal
This paper examines the political economy of the conditional cash transfer (CCT) Scheme in
Nigeria within the context of poverty reduction efforts over the years. The concept, dimensions and some
theoretical explanations for poverty are once again revisited. The nature and operation of condition cash transfer
is examined, with an eye on the economics and politics of this scheme. Authors observe that as a social
redistribution programme, CCT is a potent safety net that could really help to break the cycle of poverty among
the very poor in the country. However, within the Nigerian context, the paper observes that the issues of a clear
cut target, beneficiaries, lack of institution framework, including a standardized Monitoring and Evaluation
(ME) procedure, coupled with the obvious use of the CCT for political expedience all aggregate to dim the
possibility, viability and potency of the CCT‟S success in reducing poverty in Nigeria. However suggestions are
made against the background of how this programme is being operated elsewhere in the world, as to how to
improve the operation of this scheme in the overall matrix of poverty reduction in Nigeria.
A brief study on the measures of income distribution for both analytic and quantitative purposes in terms of size distribution and functional distribution.
The study includes discussion on following concepts-
Lorenz Curve
Gini Coefficient
Absolute Poverty
Foster Greer Thorbecke Measure
Poverty is general scarcity or the state of one who lacks a certain amount of material possessions or money. It is a multifaceted concept, which includes social, economic, and political elements. Poverty in Pakistan has fallen dramatically, independent bodies supported estimates of a considerable fall in the statistic by the 2007-08 fiscal year, when it was estimated that 17.2% of the total population lived below the poverty line
S. martínez restrepo - j. c. mejía - e. enríquez extreme poverty, displacemen...UNDP Policy Centre
This presentation is part of the programme of the International Seminar "Social Protection, Entrepreneurship and Labour Market Activation: Evidence for Better Policies", organized by the International Policy Centre for Inclusive Growth (IPC-IG/UNDP) together with Canada’s International Development Research Centre (IDRC) and the Colombian Think Tank Fedesarrollo held on September 10-11 at the Ipea Auditorium in Brasilia.
Many economists have confirmed the negative and direct relationship between economic growth and income inequality. Recent studies have tried to analyse the different transmission channels through which inequality may affect economic performance indirectly. In this paper, we are only referring to the education channels: public and private education expenditures and human capital, in order to evaluate the role of each in the explanation of this negative correlation. We noticed that a high level of inequality requires more public resources this may impede economic growth. Income inequality also discourages private financing in education and human capital accumulation which leads to a sluggish economic growth. These findings imply that private education expenditure is the most important channel which explains this negative relationship reported in the literature.
Similar to Session 6 b presentation iariw2014 (20)
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The Role of Non-Banking Financial Companies (NBFCs)
Session 6 b presentation iariw2014
1. Intertemporal pro-poorness
Intertemporal pro-poorness
Florent Bresson*, Flaviana Palmisanoz
and Jean-Yves Duclos
*Universite d'Orleans, France, zUniversite du Luxembourg,
Universite Laval, Canada
33rd General Conference of the IARIW
6B: Multidimensionality and Growth Pro-poorness
Discussed by Roberto Zelli - Sapienza University of Rome
2. Intertemporal pro-poorness
Background, motivations and goals
The main objective of `pro-poor growth' literature is to consider the
extent to which poverty changes over time because of growth.
A number of dierent analytical tools have been developed to
quantify this eect (see, inter alia, Ravallion and Chen, 2003, Son,
2004, Duclos, 2009, Essama-Nssah, 2005, Essama-Nssah and
Lambert, 2009).
Ravallion and Chen: Rate of Pro-Poor Growth (RPPG) is the mean
growth rate for the poor (as distinct from the growth rate in the
mean for the poor).
Conditions of anonymity is satis
3. ed, but postulating anonymity
implies that these tools ignore individual income dynamics, that is
they ignore the mobility experience that can take place within the
overall growth process.
4. Intertemporal pro-poorness
Background, motivations and goals
A simple example: two periods, two dierent (income)
transformation processes A and B, four individuals, poverty line
5. xed
at z = 7:
A : (4; 6; 9; 9) ! (9; 9; 4; 6) ) RPPGA = 0
B : (9; 9; 4; 6) ! (9; 9; 4; 6) ) RPPGB = 0
Building on this criticism, recent contributions have argued that
welfare relevant judgments of the eect of growth should be based
on analysis endorsing a `non-anonymous' perspective (Grimm,
2007, Jenkins and Van Kerm, 2011, Bourguignon, 2011, Palmisano
and Peragine, forthcoming).
New approach stresses the link between the overall growth
process and the mobility experience that is generated.
6. Intertemporal pro-poorness
Background, motivations and goals
Main dierences between standard analysis of pro-poor growth vs
inter-temporal pro-poorness:
1 Anonymity vs Non-anonymity.
2 Comparison of aggregate cross-sectional poverty between two
periods of time vs looking at inter-temporal (or lifetime) poverty
)focusing on a multi-temporal perspective.
3 Positive measures vs explicitly welfare-based measures.
Mobility has at least two potential eects on social welfare
(Friedman, 1962):
+ve It generally helps to equalize the distribution of permanent incomes
as compared to the distribution of periodic incomes (i.e.
cross-sectional incomes), thus increasing social welfare.
-ve It generates variability at the individual level, because of the time
variability of individual incomes that mobility induces, thus reducing
social welfare if individuals are risk averse.
7. Intertemporal pro-poorness
Background, motivations and goals
Aim is to provide a pro-poor mobility measurement framework which
builds on an explicit ill-fare function able to account for both the
costs and the bene
8. ts of mobility across time and across individuals.
This function turns out to be equivalent to the poverty counterpart
of the `equally distributed equivalent income' of Atkinson (1970).
Empirical analysis conducted on 23 European countries over the
period 2005-2008.
9. Intertemporal pro-poorness
General measurement of pro-poorness in an intertemporal setting
- Let y(i) := (yi;1; : : : ; yi;t; :::; yi;T ) be the vector of individual i's
incomes across T periods and yt is a cross-sectional vector of
incomes at time t. The income pro
10. les yi is the ith row of the
n T matrix Y .
- Denote by z the poverty line and by ~yi;t := min (yi;t; z) the periodic
income censored at the poverty line.
- Over an individual's lifetime, poverty is measured by p
y(i); z
with
y(i); z
p
0 whenever 9t 2 f1; : : : ; Tg such that yi;t z and
y(i); z
p
= 0 otherwise (union approach).
- Total intertemporal poverty is measured by the index P(Y ; z).
- Pro-poor growth is based on ill-fare comparisons of the actual
income structure Y with a benchmark structure ^ Y characterized by
the absence of distributional changes:
11. Intertemporal pro-poorness
General measurement of pro-poorness in an intertemporal setting
Intertemporal
pro-poorness
evaluation function
IPP
P( Y ^ ; z); P(Y ; z)
,
where P( ^ Y ; z) is a measure of the benchmark ill-fare.
This function tells us whether ill-fare is higher or lower in the actual
income structure as compared to the benchmark.
It is assumed to satisfy a set of very intuitive and standard
properties.
14. cation of the relationship between the two arguments of the
IPP:
IPP := P( ^ Y ; z) P(Y ; z): (1)
Speci
15. cation of the benchmark: the absence of any distributional
change implies the preservation of the status quo of the population.
) the benchmark is based on a hypothetical income structure
Y1 2
n in which every period's income distribution is the same as
the
17. cation of the periodic poverty measure used: based on the
normalized poverty gap gi;t := z~yi;t
z .
18. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
Individual ill-fare I
g(i) := (gi;1; : : : ; gi;t; :::; gi;T ) be the corresponding vector of
normalized poverty gaps for individual i across T periods.
The poverty level of each individual i, over the T periods, is
measured by (FGT class of additively decomposable indices):
p
21. 1; (2)
!t is a weighting function that captures the sensitivity of an
individual with respect to the speci
22. c period in which the deprivation
is experienced.
If !t !t+1 more importance is given to the poverty experienced
earlier in life, for instance in her childhood; if !t !t+1 more
importance is given to the poverty experienced later in life
24. captures the intensity of periodic poverty. It can be interpreted as
a measure of aversion to inequality and variability in the
normalized poverty gaps, hence as a measure of aversion to
transient poverty.
For
25. = 1, (2) corresponds to the simple weighted average of the
individual i's poverty gaps across time (not sensitive to transfers that
equalize poverty gaps from one period to the other).
For
26. 1, instead, a sequence of income transfers that keeps the
weighted mean unchanged but reduces the intertemporal variability
of poverty gaps, decreases p
27. y(i); z
, thus making the index
`variability' sensitive.
28. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
Individual ill-fare III
Use the poverty counterpart of the `equally distributed equivalent
income' for the measurement of social welfare and inequality. In this
context, the equally distributed equivalent (EDE) poverty gap
for individual i,
35. g(i)
is the value of ill-fare that, if
experienced by individual i at each period of his lifetime,
would yield him the same average poverty over time as that
generated by the distribution of his periodic poverty.
Note that:
36. (g(i)) 1(g(i)
In the absence of distributional transformations, individual
intertemporal poverty will be equivalent to
41. g(i)
; (4)
where 1 is a parameter of poverty aversion across individuals.
In order to obtain an aggregate measure of intertemporal poverty
sensitive to the equalization eect of mobility, we use again the
equally distributed equivalent methodology, obtaining the EDE in
the population, ;
47. are ordinally equivalent and so
can be used indierently for comparing any pair of distributions, we
prefer the last index since it has a simple and appealing
interpretation.
Indeed, the index ;
48. (G) is the level of intertemporal ill-fare
which, if assigned equally to all individuals and across all time
periods, would produce the same poverty level as that
generated by the intertemporal distribution G.
(It thus can be seen as an intertemporal generalization of the class of
ethical poverty indices introduced by Chakravarty (1983) for snapshot
monetary poverty).
49. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
Social ill-fare III
Benchmark: in the absence of distributional transformation, the
benchmark distribution Y1 yields the benchmark deprivation matrix G1.
As noted for individual ill-fare, the parameter
50. is irrelevant for the social
evaluation of poverty. and the cross-sectional vector g1 can be substituted
for the whole benchmark matrix G1. More precisely, we have
;
52. (g1) = ;1 (g1) =: (g1) and our benchmark
intertemporal poverty measure becomes:
(g1) =
1
n
Xn
i=1
g
i;1
!1
; (6)
which is equivalent to initial cross-sectional poverty. More speci
53. cally,
equation (6) returns the EDE gap corresponding to the FGT index P
associated with the initial distribution of income.
54. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
The iso-elastic family of intertemporal pro-poorness indices I
The measure of intertemporal pro-poorness can be expressed as
follows:
IPP;
56. (G) : (7)
It complies with desirable properties: population invariance,
anonymity, scale invariance, continuity, subgroup consistency.
Monotonicity: increasing in the level of aggregate poverty and
decreasing in the level of aggregate intertemporal poverty.
57. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
The intertemporal pro-poorness of a two-period growth/mobility process:
58.
59. Intertemporal pro-poorness
A family of inter-temporal pro-poorness indices
Decompositions I
Three additive decompositions of the Inter-temporal Pro-Poorness (IPP)
index:
1 It disentangles the impact of anonymous component of the growth
process and its mobility component:
IPP;
61. (g1; g2) | {z }
M
(8)
2 The second decomposition will be aimed at separating the
unitemporal eects of an income transformation process from the
multitemporal one (capturing the trading-o eects on poverty
between the costs and bene
75. Intertemporal pro-poorness
Empirical illustration: main results
Data I
Panel component of the Eurostat `European Union Statistics on
Income and Living Conditions' (EU-SILC).
They consider the 2006 and 2009 waves (why not 2006{2009?).
Unit of observation is the household.
Income expressed at PPP rates and in constant prices of 2005,
adjusted for hh size using the OECD scale.
Relative poverty approach, with country-speci
80. Intertemporal pro-poorness
Empirical illustration: main results
Main results I
The distribution of inter-temporal pro-poorness among countries is
quite dispersed.
It also depends on the normative relevance given to variability and
inter-individual inequality (
81. and ).
In an intertemporal pro-poorness perspective, the very early phase of
the crisis has impacted on each country-speci
82. c population with
dierent degrees of gravity.
For 13 out of 23 countries, encompassing all the southern countries,
the index is negative at least for one combination of and
83. .
Among them Cyprus and Denmark show the worst performance (the
index is always negative), followed by Spain and Sweden.
For =
84. = 1 Cyprus and Denmark are the only two countries with
negative intertemporal pro-poorness.
The remaining ten countries for which the index is always positive
are mostly represented by continental and eastern countries.
86. ve new member countries (PL, CZ, HU, LV, SI) the 2006-2009
can be judged as an intertemporal poverty reducing process,
although the IPP value varies considerably with the values of the
parameters.
An exception is Norway that performs always better than the other
countries.
The analysis is much deeper since the three types of decompositions
introduced before are computed.
87. Intertemporal pro-poorness
Empirical illustration: main results
First decomposition: anonymous growth vs mobility within European countries, 2006{09
88. Intertemporal pro-poorness
Empirical illustration: main results
Second decomposition: Unitemporal vs multitemporal eect within European countries, 2006{09
89. Intertemporal pro-poorness
Empirical illustration: main results
Third decomposition: Inequality vs Reranking vs Growth within European countries, 2006{09
90. Intertemporal pro-poorness
Conclusion and remarks
Remarks I
Very interesting and innovative approach in evaluating pro-poorness.
Decomposition helps disentangling opposite eects on pro-poorness.
This family of measures should be used to complement and not to
substitute existing tools (which are more intuitive).
Empirical concerns:
Results strongly depend on the relevance that the social planner will
give to the costs and the bene
91. ts of mobility and on the interaction
between the two: M will be positive when aversion towards individual
poverty is stronger than aversion to individual temporal variability,
92. ; whereas it will be negative when the costs of variability are
higher than the bene
97. )?
To orientate the practitioner in the deluge of possible results ! need
of some suggestions/hints.
Ex: for = 1 and
98. = 3 very low variability around zero.
Why only two waves? Neglecting income variability in between.
99. Intertemporal pro-poorness
Conclusion and remarks
Remarks II
Dicult to follow households (wrt individuals) due to demographic
changes during the period of analysis.
International (cross-country) comparison: shouldn't we take into
account the dierent growth rates of the countries over the period?
(e.g. incorporating it in the benchmark..)
Ex: Norway exceptionally pro-poor: but average yearly growth rate
of Norway was higher than many other European countries!