Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity:
"Theories of poverty traps stand in sharp contrast to the view that anybody can make it through hard work and thrift. However, empirical detection of poverty traps is complicated by the lack of long panels, measurement error, and attrition. This paper shows how dynamic pseudo-panel methods can...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
[Washington, D.C]
World Bank
[2005]
|
Schriftenreihe: | Policy research working paper
3764 |
Schlagworte: | |
Online-Zugang: | BSB01 EUV01 HTW01 FHI01 IOS01 Volltext |
Zusammenfassung: | "Theories of poverty traps stand in sharp contrast to the view that anybody can make it through hard work and thrift. However, empirical detection of poverty traps is complicated by the lack of long panels, measurement error, and attrition. This paper shows how dynamic pseudo-panel methods can overcome these difficulties, allowing estimation of non-linear income dynamics and testing for the presence of poverty traps. The paper explicitly allows for individual heterogeneity in income dynamics to account for the possibility that particular groups of individuals may face traps, even if the average individual does not. These methods are used to examine the evidence for a poverty trap in labor earnings, income, and expenditure in Mexico and are compared to panel data estimates from a short rotating panel. The results do find evidence of nonlinearities in household income dynamics and demonstrate large bias in the panel data estimates. Nevertheless, even after allowing for heterogeneity and accounting for measurement error, the paper finds no evidence of the existence of a poverty trap for any group in the sample. "--World Bank web site |
Beschreibung: | Includes bibliographical references Title from PDF file as viewed on 11/18/2005 |
Beschreibung: | 1 Online-Ressource |
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520 | 3 | |a "Theories of poverty traps stand in sharp contrast to the view that anybody can make it through hard work and thrift. However, empirical detection of poverty traps is complicated by the lack of long panels, measurement error, and attrition. This paper shows how dynamic pseudo-panel methods can overcome these difficulties, allowing estimation of non-linear income dynamics and testing for the presence of poverty traps. The paper explicitly allows for individual heterogeneity in income dynamics to account for the possibility that particular groups of individuals may face traps, even if the average individual does not. These methods are used to examine the evidence for a poverty trap in labor earnings, income, and expenditure in Mexico and are compared to panel data estimates from a short rotating panel. The results do find evidence of nonlinearities in household income dynamics and demonstrate large bias in the panel data estimates. Nevertheless, even after allowing for heterogeneity and accounting for measurement error, the paper finds no evidence of the existence of a poverty trap for any group in the sample. "--World Bank web site | |
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spelling | Antman, Francisca Verfasser aut Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity Francisca Antman, David J. McKenzie [Washington, D.C] World Bank [2005] 1 Online-Ressource txt rdacontent c rdamedia cr rdacarrier Policy research working paper 3764 Includes bibliographical references Title from PDF file as viewed on 11/18/2005 "Theories of poverty traps stand in sharp contrast to the view that anybody can make it through hard work and thrift. However, empirical detection of poverty traps is complicated by the lack of long panels, measurement error, and attrition. This paper shows how dynamic pseudo-panel methods can overcome these difficulties, allowing estimation of non-linear income dynamics and testing for the presence of poverty traps. The paper explicitly allows for individual heterogeneity in income dynamics to account for the possibility that particular groups of individuals may face traps, even if the average individual does not. These methods are used to examine the evidence for a poverty trap in labor earnings, income, and expenditure in Mexico and are compared to panel data estimates from a short rotating panel. The results do find evidence of nonlinearities in household income dynamics and demonstrate large bias in the panel data estimates. Nevertheless, even after allowing for heterogeneity and accounting for measurement error, the paper finds no evidence of the existence of a poverty trap for any group in the sample. "--World Bank web site Online-Ausg Also available in print Households Mexico Income Mexico Poverty Mexico McKenzie, David J. Sonstige oth World Bank Sonstige oth Antman, Francisca Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3764 Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Antman, Francisca Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity Households Mexico Income Mexico Poverty Mexico |
title | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
title_auth | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
title_exact_search | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
title_exact_search_txtP | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
title_full | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity Francisca Antman, David J. McKenzie |
title_fullStr | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity Francisca Antman, David J. McKenzie |
title_full_unstemmed | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity Francisca Antman, David J. McKenzie |
title_short | Poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
title_sort | poverty traps and nonlinear income dynamics with measurement error and individual heterogeneity |
topic | Households Mexico Income Mexico Poverty Mexico |
topic_facet | Households Mexico Income Mexico Poverty Mexico |
url | http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3764 |
work_keys_str_mv | AT antmanfrancisca povertytrapsandnonlinearincomedynamicswithmeasurementerrorandindividualheterogeneity AT mckenziedavidj povertytrapsandnonlinearincomedynamicswithmeasurementerrorandindividualheterogeneity AT worldbank povertytrapsandnonlinearincomedynamicswithmeasurementerrorandindividualheterogeneity |