Dynamic Poverty Decomposition Analysis: An Application to the Philippines

• Main Author: FUJII, Tomoki
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: economic growth; FGT measure; inequality; inflation; poverty profile; Watts measure; Philippines; Asian Studies; Growth and Development; Income Distribution
• Online Access: https://ink.library.smu.edu.sg/soe_research/1415; https://ink.library.smu.edu.sg/context/soe_research/article/2414/viewcontent/34_2012.pdf
• Institution: Singapore Management University

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.