The Effect of Robust Growth on Poverty: A Nonlinear Analysis

Hoover, Gary A.; Enders, Walter

doi:10.2139/ssrn.260953

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The Effect of Robust Growth on Poverty: A Nonlinear Analysis

University of Alabama EFL Working Paper No. 01-02-01

21 Pages Posted: 21 Feb 2001

See all articles by Gary A. Hoover

Walter Enders

University of Alabama - Department of Economics, Finance and Legal Studies

Date Written: February 2001

Abstract

Previous research has shown that economic growth should help to reduce the rate of poverty. However, a number of recent studies find that the economic expansion of the 1980's had no statistically significant effect on aggregate poverty. We show that a Fourier approximation provides a better empirical model of poverty than the standard linear model. It is noteworthy that the nonlinear specification shows a large and significant effect of the 1980's expansion on poverty.

JEL Classification: I32, I38

Suggested Citation: Suggested Citation

Hoover, Gary A. and Enders, Walter, The Effect of Robust Growth on Poverty: A Nonlinear Analysis (February 2001). University of Alabama EFL Working Paper No. 01-02-01, Available at SSRN: https://ssrn.com/abstract=260953 or http://dx.doi.org/10.2139/ssrn.260953