Lombardo, Vincenzo (2008): Growth and inequality effects on poverty reduction in Italy.
Download (432Kb) | Preview
This paper deals with the evaluation of poverty sensitivity to growth and distributional changes in Italy, across its regions and over a three-decade period, spanning from 1977 to 2004. We use the “Survey on Household Income and Wealth” (SHIW) of the Bank of Italy to firstly construct growth incidence curves. After estimating the size income distribution, we evaluate the income and the inequality elasticities of poverty. Growth strongly determines the patterns of poverty; however, inequality appears to have strikingly characterized it as well. The difference between North, Centre and South can be due to the different income elasticity of poverty, which in turn depends on the initial conditions of inequality and level of development.
|Item Type:||MPRA Paper|
|Original Title:||Growth and inequality effects on poverty reduction in Italy|
|Keywords:||Pro-poor growth, distribution, poverty|
|Subjects:||I - Health, Education, and Welfare > I3 - Welfare and Poverty > I30 - General
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics > C46 - Specific Distributions; Specific Statistics
|Depositing User:||Vincenzo Lombardo|
|Date Deposited:||30. Mar 2009 15:14|
|Last Modified:||12. Feb 2013 20:21|
Adams, R. H. (2004), Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty, World Development, 32 (12), pp. 1989–2014.
Addabbo, T. (2000), Poverty Dynamics: Analysis of Household Incomes in Italy, LABOUR, 14 (1), pp. 119-144.
Aitchison, J. and J. A. C. Brown (1957), The Lognormal Distribution, Cambridge, Cambridge University Press.
Atkinson, A. B. (1998), Poverty in Europe, Oxford: Blackwell.
Atkinson, A. B. and A. Brandolini (2001), Promise and Pitfalls in the use of "Secondary" Data-Sets: Income Inequality in OECD Countries As a Case Study, Journal of Economic Literature, 39 (3), pp. 771-799.
Baltagi, B. H. (2005), Econometric analysis of panel data, 3rd edition, Chichester: John Wiley.
Baltagi, B. H. and P. X. Wu (1999), Unequally Spaced Panel Data regressions with AR(1) Disturbances, Econometric Theory, Vol. 15, No. 6, pp. 814-823.
Banerjee, A. V. and E. Duflo (2004), Growth Theory through the Lens of Development Economics, in Durlauf S. and P. Aghion (eds., 2005), Handbook of Economic Growth, Volume 1A, Elsevier Science Ltd., North-Holland.
Baum, C. F., M. E. Schaffer and S. Stillman (2003), Instrumental variables and GMM: Estimation and testing, Stata Journal, 1, pp. 1-31.
Besley, T. and R. Burgess (2003), Halving Global Poverty, Journal of Economic Perspectives, 17, 3-22.
Bond, S., Hoeffler, A. and J. Temple (2001), GMM Estimation of Empirical Growth Models, CEPR discussion paper, N. 3048.
Bourguignon, F. (2003), The Growth Elasticity of Poverty Reduction: Explaining Heterogeneity across Countries and Time Periods, pp. 3-26 in: Eicher, T.S. and Turnovsky, S.J. (eds.), Inequality and Growth: Theory and Policy Implications, Cambridge: MIT Press.
Bourguignon, F. (2004), The Poverty-Growth-Inequality Triangle, paper presented at the Indian Council for Research on International Economic Relations, New Delhi.
Brandolini, A. (2005), La disuguaglianza di reddito in Italia nell’ultimo decennio, Stato e Mercato, 74, pp. 207-230.
Bruno, M., M. Ravallion and L. Squire (1996), Equity and Growth in Developing Countries: Old and New Perspectives on the Policy Issues, Policy Research Working Paper 1563, Washington: World Bank.
Chen, S. and M. Ravallion (1997), What Can New Survey Data Tell Us about Recent Changes in Distribution and Poverty?, World Bank Economic Review, 11, pp. 357-382.
Chen, S. and M. Ravallion (2003), Measuring pro-poor growth, Economics Letters, 78 (1), pp. 93-99.
Cowell, F. A., F. H. G. Ferreira and J. A. Litchfield (1998), Income distribution in Brazil 1981-1990. Parametric and non-parametric approaches, Journal of income distribution, Vol. 8, No 1, pp. 63-76.
Datt, G. and M. Ravallion (1992), Growth and Redistribution Components of Changes in Poverty Measures: A Decomposition with Applications to Brazil and India in the 1980s, Journal of Development Economics, 38, pp. 275-295.
Deaton, A. (1997), The Analysis of Household Surveys: a Microeconometric Approach to Development Policy, Washington D.C. and Baltimore: The World Bank and Johns Hopkins University Press.
Deaton, A. (2001), Counting the world’s poor: problems and possible solutions, World Bank Research Observer, 16(2), pp. 125–147.
Deaton, A. (2005), Measuring Poverty in a Growing World (or Measuring Growth in a Poor World), Review of Economics and Statistics, 87(1), 1-19.
Deininger, K. and L. Squire (1998), New Ways of Looking at Old Issues: Inequality and Growth, Journal of Development Economics, 57, pp. 259-287.
Eastwood, R. and M. Lipton (2000), Pro-poor Growth and Pro-growth Poverty Reduction: Meaning, Evidence, and Policy Implications, Asian Development Review, 18 (2), pp. 22-58.
Epaulard, A. (2003), Macroeconomic Performance and Poverty Reduction, IMF Working Paper, No. 72, Washington: International Monetary Fund.
Gasparini, L., Gutiérrez, F. and L. Tornarolli (2007), Growth and income poverty in Latin America and the Caribbean: evidence from household surveys, Review of Income and Wealth, 53 (2), pp. 209-245.
Heltberg, R. (2002), The Poverty Elasticity of Growth, WIDER Discussion Paper No. 21, Helsinki: UNU World Institute for Development Economics Research.
Hsiao, C. (2003), Analysis of Panel Data, 2nd ed., Cambridge: Cambridge University Press.
Kakwani, N. (1993), Poverty and Economic Growth with Application to Côte d’Ivoire, Review of Income and Wealth, 39, pp. 121-139.
Kakwani, N. and E. M. Pernia (2000), What is pro-poor growth, Asian Development Review, Vol. 18 (1), pp. 1-16.
Kakwani, N., Khandker, S. and H. H. Son (2004), Pro-poor growth: concepts and measurement with country case studies, IPC Centre, UNDP, IPC Working Paper No 1.
Kalwij, A. S. and A. Verschoor (2007), Not by growth alone: the role of distribution of income in regional diversity in poverty reduction, European Economic Review, Vol. 51, pp. 805-829.
Klasen, S. (2005), Economic growth and poverty reduction: Measurement and policy issues, OECD Development Centre Working Paper No. 246, Paris: OECD.
Lambert, P. (1989), The Distribution and Redistribution of Income, Cambridge: MA, Blackwell.
Lopez, J. H. (2004), Pro-Poor, Pro-Growth: A review of what we know (and what we don’t), mimeo, Washington: The World Bank.
Lopez, J. H. and L. Servén (2006), A Normal Relationship? Poverty, Growth, and Inequality, World Bank Policy Research, Working Paper N. 3814.
Matyas, L. (1999), Generalized Methods of Moments Estimation, Cambridge: Cambridge University Press
Pagan, A. and A. Ullah (1999), Non-Parametric Econometrics, Cambridge: Cambridge University Press.
Quah, D. (2003), One Third of the World's Growth and Inequality, in Eicher, T. and S. Turnovsky, Growth and Inequality: Issues and Policy Implications, Cambridge: MA, MIT Press, Ch. 2, pp. 27-58.
Ravallion, M. (1997), Can High-Inequality Countries Escape Absolute Poverty?, Economics Letters, 56, pp. 51-57.
Ravallion, M. (2001), Growth, Inequality and Poverty: Looking Beyond Averages, World Development, 29, pp. 1803-1815.
Ravallion, M. (2005), A poverty-inequality trade off?, Journal of Economic Inequality, 3, pp. 169-181.
Ravallion, M. and G. Datt (2002), Why Has Economic Growth Been More Pro-Poor in Some States of India Than Others?, Journal of Development Economics, 68, pp. 381-400.
Sala-ì-Martin, X. (2006), The world distribution of income: falling poverty and...convergence, period, Quarterly Journal of Economics, Vol. 121, No 2, pp. 351-397.
Singh, S. K. and G. S. Maddala (1976), A Function for Size Distribution of Incomes, Econometrica, Vol. 44, No. 5, pp. 963-970.
Son, H. H. (2004), A note on pro-poor growth, Economics Letters, 82, pp. 307-314.
Timmer, P. (1997), How Well Do the Poor Connect to the Growth Process?, CAER II Discussion Paper No. 17, Cambridge, Mass.: Harvard Institute for International Development
Wooldridge, J. M. (2002), Econometric analysis of cross section and panel data, Cambridge, Mass.: MIT Press.
World Bank (2006), World Development Report 2006: Equity and Development, The World Bank & Oxford University Press, Washington.
Available Versions of this Item
- Growth and inequality effects on poverty reduction in Italy. (deposited 30. Mar 2009 15:14) [Currently Displayed]