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Poverty, Transfers, and Economic Growth

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  • Barry T. Hirsch

    (University of North Carolina at Greensboro)

Abstract

This article uses a time series of poverty estimates, corrected for several major deficiencies in the official index, in order to examine the sensitivity of poverty to changes in economic variables. It is found that changes in the “corrected†poverty deficit and poverty rate between 1959 and 1975 were significantly affected by economic growth, unemployment, and social welfare expenditures. Extension of the corrected poverty series through 1983 indicates that poverty has not decreased since 1979 and currently is about equal to its 1975 level.

Suggested Citation

  • Barry T. Hirsch, 1985. "Poverty, Transfers, and Economic Growth," Public Finance Review, , vol. 13(1), pages 81-98, January.
  • Handle: RePEc:sae:pubfin:v:13:y:1985:i:1:p:81-98
    DOI: 10.1177/109114218501300106
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    References listed on IDEAS

    as
    1. Timothy M. Smeeding, 1977. "The Antipoverty Effectiveness of In-Kind Transfers," Journal of Human Resources, University of Wisconsin Press, vol. 12(3), pages 360-378.
    2. Seaks, Terry G & Layson, Stephen K, 1983. "Box-Cox Estimation with Standard Econometric Problems," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 160-164, February.
    3. Blinder, Alan S & Esaki, Howard Y, 1978. "Macroeconomic Activity and Income Distribution in the Postwar United States," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 604-609, November.
    4. Hirsch, Barry T, 1980. "Poverty and Economic Growth: Has Trickle Down Petered Out?," Economic Inquiry, Western Economic Association International, vol. 18(1), pages 151-158, January.
    5. Thornton, James R & Agnello, Richard J & Link, Charles R, 1978. "Poverty and Economic Growth: Trickle Down Peters Out," Economic Inquiry, Western Economic Association International, vol. 16(3), pages 385-394, July.
    6. Beach, Charles M & MacKinnon, James G, 1978. "A Maximum Likelihood Procedure for Regression with Autocorrelated Errors," Econometrica, Econometric Society, vol. 46(1), pages 51-58, January.
    7. Layson, Stephen K & Seaks, Terry G, 1984. "Estimation and Testing for Functional Form in First Difference Models," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 338-343, May.
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