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‘The Rich Are Just Like Us, Only Richer’: Poverty Functions or Consumption Functions?

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  • Simon Appleton

Abstract

The reduced form determinants of economic welfare, proxied by consumption, are modelled using the first nationally representative household survey of Uganda. It is investigated whether anything is gained by modelling poverty rather than welfare, when poverty is measured by the poverty gap. Parameters from the tobit poverty function are found to be generally similar to those from consumption functions, indicating that the poor receive comparable rates of return on their assets to the non‐poor. The main exception is that the return to labour is significantly lower for the poor, even with many controls.

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  • Simon Appleton, 2001. "‘The Rich Are Just Like Us, Only Richer’: Poverty Functions or Consumption Functions?," Journal of African Economies, Centre for the Study of African Economies, vol. 10(4), pages 433-469.
    • Handle: RePEc:oup:jafrec:v:10:y:2001:i:4:p:433-469.
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    File URL: http://hdl.handle.net/10.1093/jae/10.4.433
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    Cited by:

    1. Walker, Thomas S. & Tschirley, David L. & Low, Jan W. & Tanque, M. Pequentino & Boughton, Duncan & Payongayong, Ellen M. & Weber, Michael T., 2004. "Determinants of Rural Income, Poverty, and Perceived Well-Being in Mozambique in 2001-2002," Food Security Collaborative Working Papers 56061, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Appleton, Simon & Song, Lina & Xia, Qingjie, 2010. "Growing out of Poverty: Trends and Patterns of Urban Poverty in China 1988-2002," World Development, Elsevier, vol. 38(5), pages 665-678, May.
    3. Paola A. Barrientos Q. & Niels-Hugo Blunch & Nabanita Datta Gupta, 2015. "Income Convergence and the Flow out of Poverty in India, 1994-2005," Economics Working Papers 2015-09, Department of Economics and Business Economics, Aarhus University.
    4. Andersson, Magnus & Engvall, Anders & Kokko, Ari, 2006. "Determinants Of Poverty In Lao Pdr," EIJS Working Paper Series 223, Stockholm School of Economics, The European Institute of Japanese Studies.
    5. Bjorkman, Martina & Svensson, Jakob, 2007. "Power to the people : evidence from a randomized field experiment of a community-based monitoring project in Uganda," Policy Research Working Paper Series 4268, The World Bank.
    6. Paul Makdissi & Dorothée Boccanfuso & Mathieu Audet, 2006. "The Geographic Determinants of Poverty in Albania," Cahiers de recherche 06-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    7. Deininger, Klaus & Mpuga, Paul, 2004. "Economic and Welfare Effects of the Abolition of Health User Fees : Evidence from Uganda," Policy Research Working Paper Series 3276, The World Bank.
    8. Björkman, Martina & Reinikka, Ritva & Svensson, Jakob, 2006. "Local Accountability," Seminar Papers 749, Stockholm University, Institute for International Economic Studies.
    9. Tilman Brück, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," Discussion Papers of DIW Berlin 413, DIW Berlin, German Institute for Economic Research.
    10. Kirsten Ludi, 2006. "Consumption Behaviour in Zambia: The Link to Poverty Alleviation?," Working Papers 200602, University of Pretoria, Department of Economics.
    11. Sten Dieden, 2004. "Homing in on the Core – Households Incomes, Income Sources and Geography in South Africa," Working Papers 04090, University of Cape Town, Development Policy Research Unit.

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