ELASTICITY OF POVERTY:

APPLICATION OF A NEW EMPIRICAL APPROACH FOR BRAZIL

Authors

  • Erik Figueiredo
  • Ana Cláudia Annegues UFPB
  • Wallace Souza

Keywords:

poverty elasticity, indirect effects

Abstract

This study estimates the elasticities of poverty with respect to economic growth and income inequality in Brazil, using a panel data of Brazilian states and municipalities and a nonparametric estimation method, developed by Horowitz (2012) and applied by Figueiredo and Laurini (2015), which controls the effects of inequality on growth. First, the elasticity is obtained through a
log-linear regression model, traditionally used in the literature, with and without control of the effects of inequality, and then compared with the elasticities by nonparametric method. The comparison showed that the usual method of estimation without the control of the effect of inequality tends to overestimate the values of elasticities, particularly with respect to economic growth.

Published

2022-01-10

How to Cite

Figueiredo, E., Annegues, A. C., & Souza, W. (2022). ELASTICITY OF POVERTY:: APPLICATION OF A NEW EMPIRICAL APPROACH FOR BRAZIL. Planejamento E Políticas Públicas, (44). Retrieved from //ipea.gov.br/ppp/index.php/PPP/article/view/391

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