POVERTY EQUIVALENT GROWTH RATE

This paper proposes a new type of growth rate, called the “poverty equivalent growth rate” (PEGR), which takes into account both the growth rate in mean income and how the benefits of growth are distributed between the poor and the non‐poor. The proposed measure satisfies a basic requirement that th...

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Bibliographic Details
Published inThe Review of income and wealth Vol. 54; no. 4; pp. 643 - 655
Main Authors Kakwani, Nanak, Son, Hyun H.
Format Journal Article
LanguageEnglish
Published Oxford, UK Blackwell Publishing Ltd 01.12.2008
Subjects
Brazil
Development strategies
Economic growth
Economic theory
Growth rate
Growth rates
Household income
Households
Income distribution
Poverty
Poverty alleviation
Standard of living
Studies
Surveys
Brazil
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Summary:This paper proposes a new type of growth rate, called the “poverty equivalent growth rate” (PEGR), which takes into account both the growth rate in mean income and how the benefits of growth are distributed between the poor and the non‐poor. The proposed measure satisfies a basic requirement that the proportional reduction in poverty is a monotonically increasing function of the PEGR. Thus, maximizing the PEGR implies a maximum reduction in poverty. The paper demonstrates that the magnitude of PEGR determines the pattern of growth: whether growth is pro‐poor in relative or absolute sense or is “poverty reducing” pro‐poor. The pattern of growth has been analyzed for Brazil using the National Household Survey (PNAD) covering the period 1995–2005.
Bibliography:istex:A6B1890D14693C1650551CB03C911F6699493B03
ark:/67375/WNG-6S18ZMZR-3
ArticleID:ROIW293
ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0034-6586
1475-4991
DOI:10.1111/j.1475-4991.2008.00293.x