Poverty being multi-dimensional in nature is the product of various interactive socioeconomic factors. Some of the factors shaping economic status of the household may be cited as widowhood, disability, illiteracy, ageing, household size, household status, dependency, low wages of the female workers, household responsibilities etc. Theory suggests that the ability of a household to earn a given level of income is to a great extent determined by the characteristics internal to the household. The main purpose of this paper is to identify the factors that explain their relative effect on poverty of the household. Poverty thus captured at micro level is expected to provide insights for polices to alleviate poverty at national level. The standard econometric method of logistic regression technique has been used to determine the extent to which the factors influence the probability of a household being poor. The paper is based on data obtained from a sample survey conducted in Bangladesh during 2008-09.JEL Classification: I132, C21, C51
Problem statement:In this study we develop a comprehensive model involving local taxes, intergovernmental transfers and bureaucratic corruption to characterize a fiscal equilibrium in order to explain the provision of local (public) expenditure in developing nations. The main goal of the research is to explain economic misgovernance as an equilibrium phenomenon, which is therefore expected to persist over time despite serious economic and social costs. Approach: We develop an interactive model of fiscal gaming to understand economic misgovernance in the context of game theory. Resutls: It is constructively argued that the proposed fiscal game is beset with multiple equilibria and the consequent indeterminacy. The possibility of unstable equilibria, or an absence of pure-strategy equilibrium renders the system highly fragile. We also demonstrate the possibility of serious bifurcations of a stable fiscal equilibrium that loses stability with changes in values of relevant parameters. We extend this model further to argue how the chaotic behavior and complexities can characterize the dynamics of decision-making in this present context. Conclusion: The emergence of chaos can undermine the efficiency and predictability of the equilibrium of the proposed fiscal game, which can in turn seriously impinge on the quality of local goods in developing nations. We argue that an understanding of the fragility and complexity of local government system is essential for policy makers for achieving a sustainable local government system in developing nations.
In developing countries, we observe a new class of workers who work but live in poverty. Not only they are lowly paid but also deprived of opportunities available in the society. A person’s feeling of deprivation arises from incomes that are higher than his own income. Sen in his 1976 work on poverty measurement brought the term deprivation into focus. He posited that an individual’s level of deprivation in the income scale is an increasing function of the number of persons who are better off than the person in question, or, alternatively, the share of the given population that is better off. In a society where distribution of resources is unequal, deprivation of a particular group of workers is not unlikely. The idea behind deprivation theory is that merely lack of some goods and opportunities do not create a sense of deprivation among the workers. There are other factors that cause and perpetuate deprivation of the workers. This paper is an attempt to identify the factors and examine deprivation of the workers based on a sample survey conducted in Bangladesh in 2008-09. Findings of the study suggest that deprivation is acute among the uneducated aged workers with large household size predominated by low paid casual workers owning small landholding. Deprivation and age of the workers displayed a U-shaped curve indicating that deprivation increases with the increase of age. Deprivation is more pronounced among female workers compared to male workers. Food and health expenditure contributes significantly to reducing deprivation of the workers. Obviously, owners of better dwelling houses are less deprived than those owning poor dwelling houses. Interestingly, manufacturing workers have been found to be more deprived than other sectors under study.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.