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Poverty comparisons with dependent samples

Author

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  • Buhong Zheng

    (Department of Economics, University of Colorado at Denver, USA)

Abstract
Standard inference procedures for poverty comparisons require samples to be independent. For many commonly used income samples, however, this requirement is not fulfilled since samples are rotated. This article introduces an easy-to-use method of correction for sample dependency. We also apply the method to test changes in US poverty in the 1990s and to evaluate the marginal effects of public assistance on poverty before and after the recent welfare reform. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Buhong Zheng, 2004. "Poverty comparisons with dependent samples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(3), pages 419-428.
    • Handle: RePEc:jae:japmet:v:19:y:2004:i:3:p:419-428
    DOI: 10.1002/jae.779
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    References listed on IDEAS

    as
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    3. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
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    5. Bishop, John A & Chow, K Victor & Zheng, Buhong, 1995. "Statistical Inference and Decomposable Poverty Measures," Bulletin of Economic Research, Wiley Blackwell, vol. 47(4), pages 329-340, October.
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    7. Zheng, Buhong, 2001. "Statistical inference for poverty measures with relative poverty lines," Journal of Econometrics, Elsevier, vol. 101(2), pages 337-356, April.
    8. repec:bla:jecsur:v:11:y:1997:i:2:p:123-62 is not listed on IDEAS
    9. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-639, November.
    10. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    11. Zheng, Buhong & J. Cushing, Brian, 2001. "Statistical inference for testing inequality indices with dependent samples," Journal of Econometrics, Elsevier, vol. 101(2), pages 315-335, April.
    12. Buhong Zheng, 1997. "Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
    13. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
    14. Ann Dryden Witte & Magaly Queralt & Tasneem Chipty & Harriet Griesinger, 1998. "Unintended Consequences? Welfare Reform and the Working Poor," NBER Working Papers 6798, National Bureau of Economic Research, Inc.
    15. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
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    Cited by:

    1. Michal Brzezinski, 2015. "Accounting for trends in health poverty: a decomposition analysis for Britain, 1991–2008," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 153-159, March.
    2. James Westfall & Christopher Woodall & Mark Hatfield, 2013. "A statistical power analysis of woody carbon flux from forest inventory data," Climatic Change, Springer, vol. 118(3), pages 919-931, June.
    3. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    4. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.

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