dorsal/arxiv
View SchemaIncome Distribution Dependence of Poverty Measure: A Theoretical Analysis
| Authors | Amit K Chattopadhyay, Sushanta K Mallick |
|---|---|
| Categories | |
| ArXiv ID | physics/0507035 |
| URL | https://arxiv.org/abs/physics/0507035 |
| DOI | 10.1016/j.physa.2006.10.103 |
| Journal | "Income distribution dependence of poverty measure: A theoretical analysis" in Physica A, 377, 241-252 (2007) |
Abstract
With a new deprivation (or poverty) function, in this paper, we theoretically study the changes in poverty with respect to the `global' mean and variance of the income distribution using Indian survey data. We show that when the income obeys a log-normal distribution, a rising mean income generally indicates a reduction in poverty while an increase in the variance of the income distribution increases poverty. This altruistic view for a developing economy, however, is not tenable anymore once the poverty index is found to follow a pareto distribution. Here although a rising mean income indicates a reduction in poverty, due to the presence of an inflexion point in the poverty function, there is a critical value of the variance below which poverty decreases with increasing variance while beyond this value, poverty undergoes a steep increase followed by a decrease with respect to higher variance. Following these results, we make quantitative predictions to correlate a developing with a developed economy.
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"abstract": "With a new deprivation (or poverty) function, in this paper, we theoretically\nstudy the changes in poverty with respect to the `global\u0027 mean and variance of\nthe income distribution using Indian survey data. We show that when the income\nobeys a log-normal distribution, a rising mean income generally indicates a\nreduction in poverty while an increase in the variance of the income\ndistribution increases poverty. This altruistic view for a developing economy,\nhowever, is not tenable anymore once the poverty index is found to follow a\npareto distribution. Here although a rising mean income indicates a reduction\nin poverty, due to the presence of an inflexion point in the poverty function,\nthere is a critical value of the variance below which poverty decreases with\nincreasing variance while beyond this value, poverty undergoes a steep increase\nfollowed by a decrease with respect to higher variance. Following these\nresults, we make quantitative predictions to correlate a developing with a\ndeveloped economy.",
"arxiv_id": "physics/0507035",
"authors": [
"Amit K Chattopadhyay",
"Sushanta K Mallick"
],
"categories": [
"physics.soc-ph",
"physics.data-an",
"q-fin.GN"
],
"doi": "10.1016/j.physa.2006.10.103",
"journal_ref": "\"Income distribution dependence of poverty measure: A theoretical\n analysis\" in Physica A, 377, 241-252 (2007)",
"title": "Income Distribution Dependence of Poverty Measure: A Theoretical Analysis",
"url": "https://arxiv.org/abs/physics/0507035"
},
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