Publication:
Poverty Traps and Nonlinear Income Dynamics with Measurement Error and Individual Heterogeneity

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dc.contributor.authorAntman, Francisca
dc.contributor.authorMcKenzie, David J.
dc.date.accessioned2012-06-19T21:40:54Z
dc.date.available2012-06-19T21:40:54Z
dc.date.issued2005-11
dc.description.abstractTheories 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.en
dc.identifierhttp://documents.worldbank.org/curated/en/2005/11/6399313/poverty-traps-nonlinear-income-dynamics-measurement-error-individual-heterogeneity
dc.identifier.doi10.1596/1813-9450-3764
dc.identifier.urihttps://hdl.handle.net/10986/8493
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 3764
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCAPITAL MARKET
dc.subjectCONDITIONAL CONVERGENCE
dc.subjectCONSUMER PRICE INDEX
dc.subjectDATA SET
dc.subjectDEPENDENT VARIABLE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDYNAMIC ADJUSTMENT
dc.subjectECONOMETRICS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC REVIEW
dc.subjectECONOMIC STUDIES
dc.subjectEMPIRICAL LITERATURE
dc.subjectEMPIRICAL STUDIES
dc.subjectFUNCTIONAL FORM
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD MEMBERS
dc.subjectINCOME
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINCREASING FUNCTION
dc.subjectINEQUALITY
dc.subjectINSTRUMENTAL VARIABLES
dc.subjectINSURANCE
dc.subjectLABOR FORCE
dc.subjectLAGGED DEPENDENT
dc.subjectLINEAR MODEL
dc.subjectLINEAR REGRESSION
dc.subjectLOW INCOME
dc.subjectMACROECONOMICS
dc.subjectMARKET IMPERFECTIONS
dc.subjectMEAN INCOME
dc.subjectMEASUREMENT ERROR
dc.subjectMEASUREMENT ERRORS
dc.subjectMEASUREMENT ¡ ¢ ERROR
dc.subjectMINIMUM LEVEL
dc.subjectMORAL HAZARD
dc.subjectNATIONAL INCOME
dc.subjectNUTRITIONAL STATUS
dc.subjectOLD AGE
dc.subjectPOLICY IMPLICATIONS
dc.subjectPOLICY INTERVENTIONS
dc.subjectPOLICY RESEARCH
dc.subjectPOLITICAL ECONOMY
dc.subjectPOOR
dc.subjectPOSITIVE VALUE
dc.subjectREMITTANCES
dc.subjectRISK MANAGEMENT
dc.subjectSAMPLE SIZE
dc.subjectSERIAL CORRELATION
dc.subjectTIME SERIES
dc.subjectTRANSFER PROGRAMS
dc.subjectTRANSITION ECONOMIES
dc.subjectUNEMPLOYMENT
dc.subjectWEALTH
dc.titlePoverty Traps and Nonlinear Income Dynamics with Measurement Error and Individual Heterogeneityen
dspace.entity.typePublication
okr.crossref.titlePoverty Traps And Nonlinear Income Dynamics With Measurement Error And Individual Heterogeneity
okr.date.doiregistration2025-04-10T10:03:28.326112Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2005/11/6399313/poverty-traps-nonlinear-income-dynamics-measurement-error-individual-heterogeneity
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticePoverty
okr.guid664711468045054004
okr.identifier.doi10.1596/1813-9450-3764
okr.identifier.externaldocumentum000016406_20051108152912
okr.identifier.internaldocumentum6399313
okr.identifier.reportWPS3764
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/11/08/000016406_20051108152912/Rendered/PDF/wps3764.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryMexico
okr.topicEconomic Theory and Research
okr.topicMacroeconomics and Economic Growth::Economic Conditions and Volatility
okr.topicServices and Transfers to Poor
okr.topicPoverty Monitoring and Analysis
okr.topicPoverty Reduction::Inequality
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isAuthorOfPublication.latestForDiscovery148d6d6d-76e5-5d6f-9af9-98313e30551f
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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