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This text addresses the understanding and alleviation of poverty, inequality, and inequity using a unique and broad mix of concepts, measurement methods, statistical tools, software, and practical exercises. Part I discusses basic fundamental issues of well-being and poverty measurement. Part II develops an integrated framework for measuring poverty, social welfare, inequality, vertical equity, horizontal equity, and redistribution. Part III presents and develops recent methods for testing the robustness of distributive rankings. Part IV discusses ways of using policy to alleviate poverty, improve welfare, increase equity, and assess the impact of growth. Part V applies the tools to real data.
Most of the book’s measurement and statistical tools have been programmed in DAD, a well established and widely available free software program that has been tailored especially for income distribution analysis and is used by scholars, researchers, and analysts in nearly 100 countries worldwide. It requires basic understanding of calculus and statistics.
Abdelkrim Araar and Jean-Yves Duclos teach economics at Université Laval in Québec City.
Conceptual and Methodological Issues.- Well-Being and Poverty.- The Empirical Measurement of Well-Being.- Measuring Poverty and Equity.- and Notation.- Measuring Inequality and Social Welfare.- Measuring Poverty.- Estimating Poverty Lines.- Measuring Progressivity and Vertical Equity.- Horizontal Equity, Reranking and Redistribution.- Ordinal Comparisons of Poverty and Equity.- Distributive Dominance.- Poverty Dominance.- Welfare and Inequality Dominance.- Poverty and Equity: Policy and Growth.- Poverty Alleviation: Policy and Growth.- Targeting in the Presence of Redistributive Costs.- Estimation and Inference for Distributive Analysis.- An Introduction to DAD: A Software for Distributive Analysis.- Non-Parametric Estimation in DAD.- Estimation and Statistical Inference.- Statistical Inference in Practice.- Exercises.- Exercises.