Changes in Welfare and poverty: An application of Stochastic Dominance Criteria

The study analyses changes in urban and rural poverty levels in Ethiopia between 1994 and 1997 using stochastic dominance criteria. The results show that there are only small differences in urban and rural poverty levels. Rural poverty was significantly reduced between 1994 and 1997, will urban poverty remained largely unchanged. Both urban and rural areas saw an increase in average incomes combined with an increase in inequality. The welfare evaluation of these changes depends on one's valuation of efficiency or mean income change relative to equity change. We use a welfare criterion proposed by Tam and Zhang, by which rural welfare can be see to have increased even for relatively egalitarian preferences, while urban welfare did not increase even in the case of little concern for equality.


Keywords:
Editor(s):
Tassew, W/Hanna
Alemayehu, Seyoum
Alemu, Mekonnen
Berhane, Tareke
Getachew, Asgedom
Getachew, Yoseph
Tenkir, Bonger
Issue Date:
2002-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/250158
Published in:
Ethiopian Journal of Economics, Volume 08, Number 1
Page range:
21-36
Total Pages:
98
Note:
Special Issue: Poverty and Poverty |Determinants in Ethiopia(Financed by Action Aid-Ethiopia)
Series Statement:
ETHIOPIAN JOURNAL OF ECONOMICS
Volume VIII Number 1; April 1999




 Record created 2017-04-01, last modified 2017-08-29

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