Income and inequality elasticity of poverty: The case of CESEE countries
This paper examines poverty changes decomposed into two components: the growth effect and the distributive effect. This contribution is based on an empirical analysis of the Central and South-Eastern Europe (CESEE) countries, drawing on the latest years’ official data. The income and ine...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2024-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | https://doiserbia.nb.rs/img/doi/0013-3264/2024/0013-32642443041S.pdf |
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| Summary: | This paper examines poverty changes decomposed into two components: the
growth effect and the distributive effect. This contribution is based on an
empirical analysis of the Central and South-Eastern Europe (CESEE)
countries, drawing on the latest years’ official data. The income and
inequality elasticity of poverty is estimated using the established panel
data model. Based on linear regressions, the transformation of economic
growth and income inequality to poverty reduction in CESEE countries is
analysed. The study found that income growth contributes to poverty
reduction, while the contribution of inequality is stronger and in the
opposite direction. Thus, further progress in tackling poverty may be
achieved under a relatively favourable income distribution. Since
sub-regional differences in income inequality elasticity were not found, it
would seem reasonable, therefore, to give special attention to reducing
inequality in all CESEE countries. |
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| ISSN: | 0013-3264 1820-7375 |