In this paper, we propose a new method of poverty decomposition. Our method remedies the shortcomings of existing methods and has some desirable properties such as time-reversion consistency and subperiod additivity. It integrates the existing methods of growth-redistribution decomposition and sector-based decomposition, because it allows us to decompose poverty change into growth and redistribution components for each group (e.g. regions or sectors) in the economy. We extend our method to have six components and provide an empirical application to the Philippines for the period 1985-2009.
economic growth, FGT measure, inequality, inflation, poverty profile, Watts measure, Philippines
Economics | Growth and Development
Singapore Management University, School of Economics
City or Country
Dynamic Poverty Decomposition Analysis: An Application to the Philippines. (2012). 1-47. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/1415
Copyright Owner and License
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.