Poverty Dynamics and Food Policy Programs: Help to Solve Chronic Poverty

Abstract

This study analyzes poverty dynamics in Nicaragua between 1998 and 2001. It goes further, in simulating an iron supplement program to test if reduction in poverty, vulnerability and undernourishment is significant. The findings support the argument that targeted food policies to remove chronic poverty are very effective. The method is illustrated using the raw data from EMV 1998 and EMV 2001 (Encuesta de Hogares sobre Medicin del Nivel de Vida, a rotating panel data).

Keywords: Poverty, Undernutrition, Vulnerability, Poverty Reduction Policy, Treatment Effects Model, Propensity Score Matching (PSM) Model, Nicaragua

JEL Classification: C15, C21, I32