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Statistical Inference and Decomposable Poverty Measures

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  • Bishop, John A
  • Chow, K Victor
  • Zheng, Buhong

Abstract

The paper develops simple statistical test procedures for generalized decomposable poverty measures. It is shown that the estimates of the decomposable poverty indices, including the overall and various sub-group poverty indices, have (asymptotic) jointly normal distributions. The full variance-covariance structure is derived and can be estimated consistently without prior specification of the population density underlying the sample data. The (overall/decomposed) poverty indices can thus be used as tools for statistical inference instead of simply as descriptive statistics. We illustrate the test procedure by examining the contributions of whites and non-whites to total U.S. poverty in 1975 and 1985. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Suggested Citation

  • Bishop, John A & Chow, K Victor & Zheng, Buhong, 1995. "Statistical Inference and Decomposable Poverty Measures," Bulletin of Economic Research, Wiley Blackwell, vol. 47(4), pages 329-340, October.
    • Handle: RePEc:bla:buecrs:v:47:y:1995:i:4:p:329-40
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    Citations

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    Cited by:

    1. Kenneth R. Simler & Channing Arndt, 2007. "Poverty Comparisons With Absolute Poverty Lines Estimated From Survey Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(2), pages 275-294, June.
    2. Russell Davidson, 2006. "Stochastic Dominance," Departmental Working Papers 2006-19, McGill University, Department of Economics.
    3. Ingvild Almås, 2008. "Equalizing Income Versus Equalizing Opportunity: A Comparison of the United States and Germany," LIS Working papers 476, LIS Cross-National Data Center in Luxembourg.
    4. Stephen Bazen & Xavier Joutard & Mouhamadou Niang, 2014. "The measurement of unemployment using completed durations: evidence on the gender gap in unemployment in France," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 517-534, December.
    5. Simler, Kenneth R. & Arndt, Channing, 2006. "Poverty Comparisons with Endogenous Absolute Poverty Lines," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25775, International Association of Agricultural Economists.
    6. Lars Osberg & Kuan Xu, 1999. "Poverty Intensity: How Well Do Canadian Provinces Compare?," Canadian Public Policy, University of Toronto Press, vol. 25(2), pages 179-195, June.
    7. Zheng, Buhong, 2001. "Statistical inference for poverty measures with relative poverty lines," Journal of Econometrics, Elsevier, vol. 101(2), pages 337-356, April.
    8. Robert H. DeFina, 2007. "A comparison of poverty trends and policy impacts for working families using different poverty indexes," Working Papers 07-13, Federal Reserve Bank of Philadelphia.
    9. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    10. John Bishop & Andrew Grodner & Haiyong Liu & Ismael Ahamdanech-Zarco, 2014. "Subjective poverty equivalence scales for Euro Zone countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(2), pages 265-278, June.
    11. Osberg, Lars, 2002. "Trends in poverty: the UK in international perspective: how rates mislead and intensity matters," ISER Working Paper Series 2002-10, Institute for Social and Economic Research.
    12. Channing Arndt & Kenneth R. Simler, 2007. "Consistent poverty comparisons and inference," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 133-139, September.
    13. Buhong Zheng, 2004. "Poverty comparisons with dependent samples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 419-428.
    14. Robert H. DeFina, 2002. "The impact of unemployment on alternative poverty measures," Working Papers 02-8, Federal Reserve Bank of Philadelphia.
    15. Michal Brzezinski, 2011. "Variance Estimation for Richness Measures," LWS Working papers 11, LIS Cross-National Data Center in Luxembourg.
    16. Stephen Bazen & Xavier Joutard & Mouhamadou M. Niang, 2012. "The Duration-Based Measurement of Unemployment: Estimation Issues and an Application to Male-Female Unemployment Differences in France," Working Papers halshs-00793056, HAL.
    17. Buhong Zheng, 1997. "Statistical Inferences for Poverty Measures with Relative Poverty Rates," LIS Working papers 167, LIS Cross-National Data Center in Luxembourg.
    18. Feubi Pamen, Eric Patrick & Gankou, Jean Marie & Emini, Arnault Christian, 2010. "Dynamique de la pauvreté non monétaire au Cameroun entre 2001 et 2007: analyse en correspondances multiples et tests de dominance stochastique [Dynamic of non monetary poverty in Cameroon between 2," MPRA Paper 32701, University Library of Munich, Germany.
    19. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.

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