Poverty Decomposition by Regression: An Application to Tanzania

36 Pages Posted: 5 Sep 2015

See all articles by Tomoki Fujii

Tomoki Fujii

Singapore Management University - School of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: August 30, 2015

Abstract

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.

Suggested Citation

Fujii, Tomoki, Poverty Decomposition by Regression: An Application to Tanzania (August 30, 2015). Tokyo Center for Economic Research (TCER) Paper No. E-97. Available at SSRN: https://ssrn.com/abstract=2655915

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