Poverty decomposition by regression: An application to Tanzania

• Main Author: FUJII, Tomoki
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: FGT measure; Watts measure; market access; infrastructure; Econometrics
• Online Access: https://ink.library.smu.edu.sg/soe_research/2529; https://ink.library.smu.edu.sg/context/soe_research/article/3528/viewcontent/wp2015_102.pdf
• Institution: Singapore Management University

We develop a poverty decomposition method that is based on a consumption regression model. Because this method uses an integral of the partial derivatives of a poverty measure with respect to time, the resulting poverty decomposition satisfies time-reversion consistency and sub-period additivity. Unlike the existing poverty decomposition methods, it allows us to ascribe the observed change in poverty to various covariates of interest collected at a disaggregate level. This method is applied to two datasets from Tanzania to assess, among others, the short- and long-term impacts of infrastructure and market access on poverty.