Is Economic Growth Good for the Poor? Tracking Low Incomes Using General Means

30 Pages Posted: 22 Oct 2008

See all articles by James E. Foster

James E. Foster

George Washington University

Miguel Székely

Center for Education and Social Studies

Multiple version iconThere are 2 versions of this paper

Abstract

We propose the use of an alternative methodology to track low incomes based on Atkinson's equally distributed equivalent income functions or general means and present a new characterization to justify their application. To evaluate the effects of growth on lower incomes, growth rates are compared for two income standards: the ordinary mean and a low-income-sensitive general mean. The question is: How closely related are these two variables? After estimating the growth elasticity, we find that it is not significantly different from zero. Thus, it cannot be concluded that poorer incomes grow proportionately to increases in the average income.

Suggested Citation

Foster, James E. and Székely, Miguel, Is Economic Growth Good for the Poor? Tracking Low Incomes Using General Means. International Economic Review, Vol. 49, No. 4, pp. 1143-1172, November 2008, Available at SSRN: https://ssrn.com/abstract=1287398 or http://dx.doi.org/10.1111/j.1468-2354.2008.00509.x

James E. Foster

George Washington University ( email )

2121 I Street NW
Washington, DC 20052
United States

Miguel Székely (Contact Author)

Center for Education and Social Studies ( email )

Mexico City
Mexico

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
1,109
PlumX Metrics