Dynamic Poverty Decomposition Analysis: An Application to the Philippines

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. The author greatly benefited from useful and encouraging comments from Masahiko Aoki, Satya R. Chakravarty, Koichi Hamada, Almas Heshmati, Seiro Ito, Weerachart Kilenthong, Takashi Kurosaki, Esfandiar Maasoumi, Yasuyuki Sawada, Abu Shonchoy, Jacques Silber, Zhang Jipeng, and participants of the 2012 Asian Meeting of the Econometric Society, the 9th Annual Conference on Economic Growth and Development, and research seminars and workshops held at the Asian Development Bank Institute (ADBI), IDE-JETRO, Nanyang Technological University, Singapore Management University, and Sogang University. Xu Sijia provided research assistance.The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, the ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, Japan AbstractIn this paper, we propose a new method of poverty decomposition. Our method remedies the shortcomings of existing methods and has some desirable properties such as timereversion consistency and subperiod additivity. It integrates the existing methods of growthredistribution decomposition and sector-based decomposition, because it allows us to decompose the change in poverty into growth and redistribution components for each group (e.g., regions or sectors) in the economy. We extend our method to include six components and provide an empirical application to the Philippines for the period 1985-2009. JEL Classification: I32, O10ADBI Working Paper 466 Fujii

Poverty decomposition by regression: An application to Tanzania

“…Furthermore, with an exception of the Shapley decomposition, none of these decompositions satisfy the time-reversion consistency. In other words, the contribution of each component for the change in poverty from time t 0 to time t 1 is not the same as that component for the change from time t 1 to time t 0 with the opposite sign as pointed out by Fujii (2014).…”

“…To address these issues, Fujii (2014) proposed a dynamic poverty decomposition method based on integration, thereby effectively internalizing the reference period. He then demonstrated that his decomposition method can be extended to include additional components such as within-region inequality and between-region inequality components, which was not possible or practical before.…”

“…Therefore, we propose a new decomposition method using regressions such that observed poverty changes can be ascribed to unit-level variables. As with Fujii (2014), our method is theoretically founded on integration and thus retains sub-period additivity and time-reversion consistency.…”

“Procedure versus practice”: navigating ethical tensions in social entrepreneurship research involving vulnerable people in the developing world

“…Context is a critical aspect of socially sensitive research involving vulnerable people, such as SE beneficiaries. Given that the significance of context wherein such factors as demography (Cudia, 2015), culture (Rivera, 2015), ethnicity, geographical location (Fujii, 2017), education, occupation, household size and risk of exposure to natural calamities impact an individual's experience of poverty (Bayudan-Dacuycuy and Lim, 2014), each participant was a case that represented an instance of beneficiary engagement and a unique life context (Eisenhardt, 2002). In my ethics application, I proposed to interview participants in communities engaged with various social enterprises.…”

Measurement and identification of relative poverty level of pastoral areas: an analysis based on spatial layout

“…Some scholars focused on the objects of relative poverty. In the identification of poor families, the United Nations Development Programme (UNDP) (Drewnowski and Specter 2004) treated per capita income, life expectancy, and literacy rate as effective indices of poor families (Duckett 1998;Fujii 2017;Gao and Zhai 2012;Gao et al 2011;Gazeley and Verdon 2014;Ge et al 2017). In the identification of poor areas, Alkire et al (Gao and Zhai 2012) delegated the power of poverty identification to village, township, and county levels and designed local approaches that identify relatively poor people according to local conditions.…”