Counterfactual Decomposition of Pro-Poorness Using Influence Functions
Poverty reduction has emerged as a fundamental social objective of development, and has become a metric commonly used to assess the performance of public policy. This paper adapts the methodology of Firpo, Fortin and Lemieux (2009) [2009. “Unconditional Quantile Regressions.” Econometrica 77 (3): 95...
Main Authors: | , |
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Language: | en_US |
Published: |
Taylor and Francis
2016
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Subjects: | |
Online Access: | http://hdl.handle.net/10986/23560 |
Summary: | Poverty reduction has emerged as a fundamental social objective of development, and has become a metric commonly used to assess the performance of public policy. This paper adapts the methodology of Firpo, Fortin and Lemieux (2009) [2009. “Unconditional Quantile Regressions.” Econometrica 77 (3): 953–973] to the measurement of the pro-poorness of income growth. The method allows the analyst to identify co-variates that affect poverty reduction. The methodology is policy-relevant because policy-makers can better target these co-variates than the average level of income, or the level of inequality. We demonstrate this by application to Bangladesh 2000–2010. |
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