Growth May Be Good for the Poor, but Decline Is Disastrous: on the Non-robustness of the Dollar-kraay Result
نویسنده
چکیده
The Dollar-Kraay result (that the income elasticity of the lowest quintile’s income is essentially one) is identified as a statistical artifact related to the irregular sampling intervals in their data. Corrected results suggest an asymmetric response to growth versus decline.
منابع مشابه
Growth Is Good for the Poor but Decline Is Disastrous
This paper re-examines the Dollar and Kraay (2002) result that per capita real income for the poorest quintile in a country grows equiproportionately with the rest of the economy. Results obtained here using the Dollar and Kraay data set indicate that the real per capita income of the poor rises less than proportionately when growth is positive and falls dramatically when growth is negative. Th...
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