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651. Trade Liberalization and Spatial Inequality: A Methodological Innovation in Vietnamese Perspective

Author:
Henning Tarp Jensen and Finn Tarp
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In this paper we calibrate two static computable general equilibrium (CGE) models with respectively 16 and 5,999 representative households. Aggregated and disaggregated household categories are consistently embedded in a 2000 social accounting matrix for Vietnam, mapping on a one-to-one basis to each other. Distinct differences in poverty assessments emerge when the impact of trade liberalization is analyzed in the two models. This highlights the importance of modeling micro household behavior and related income and expenditure distributions endogenously within a static CGE model framework. Our simulations indicate that poverty will rise following a revenue-neutral lowering of trade taxes. This is interpreted as a worst case scenario, which suggests that government should be proactive in combining trade liberalization measures with a propoor fiscal response to avoid increasing poverty in the short to medium term.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Vietnam and Southeast Asia

652. Economic Well-being and Non-economic Well-being: A Review of the Meaning and Measurement of Poverty

Author:
Andrew Sumner
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the measurement of poverty and well-being. A historical overview is given of the last fifty years. This is followed by discussion of three groupings of indicators: those measures based primarily on economic well-being; those based on non-economic well-being and composite indicators. It is argued that the choice of indicator should reflect its purpose and that economic measures are best when quick, rough-and-ready, short run, aggregate inferences are required. In contrast, non-economic measures are better when greater depth on medium- or longer-term trends and/or dis-aggregation are required.
Topic:
Demographics, Economics, Human Welfare, and Poverty

653. Well-being and the Complexity of Poverty: A Subjective Well-being Approach

Author:
Mariano Rojas
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This investigation studies human well-being from a subjective well-being approach. On the basis of a Mexican database the investigation shows that there is a weak relationship between subjective well-being and indicators of well-being such as income and consumption. Therefore, subjective well-being provides additional useful information to study human well-being and, in consequence, poverty.
Topic:
Economics, Human Welfare, and Poverty
Political Geography:
Latin America, Central America, North America, and Mexico

654. Income-based Measures of Average Well-being

Author:
Steve Dowrick
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Internation comparisons of average national incomes omit important information about leisure, home production, health, etc. They are also bedevilled by index number problems. This paper suggests ways of combining working hours and life-expectancy with income comparisons, and shows that the fixed-price indexes of real income, such as those in the Penn World Table, substantially understate the income gaps between the poorest and richest countries.
Topic:
Demographics, Economics, Human Welfare, and Poverty

655. Subjective Measures of Well-being

Author:
Ruut Veenhoven
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper deals with three questions: (1) What are 'subjective' measures? (2) What is 'well-being'? and (3) Are subjective measures of well-being of use for policymaking, in particular in developing nations?
Topic:
Development, Human Welfare, and Poverty

656. Human Well-being: Concepts and Conceptualizations

Author:
Des Gasper
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic measures of income have ignored large areas of human well-being and are poor measures of well-being in the areas to which they attend. Despite increased recognition of those distortions, 'GNP per capita continues to be regarded as the quintessential indicator of a country's living standard' (Partha Dasgupta). Well-being seems to have intuitive plausibility as a concept, but in practice we encounter a bewilderingly diverse family of concepts and approaches, partly reflecting different contexts, purposes, and foci of attention. Is there a unifying framework that yet respects the complexity and diversity of well-being? This paper presents an imperfect comparative and integrative framework that builds on the contributions by Sen and others. We move toward the framework gradually, since well-being concepts are in fact complex entitities which reflect pictures of personhood and of science. Insight grows through surveying a wide range of relevant experience and views, before risking blinkering one's vision in a framework. The paper then uses the framework to examine conceptualizations of human well-being, by Dasgupta, Sen, Nussbaum, Doyal and Gough, and Alkire.
Topic:
Demographics, Development, Human Welfare, and Poverty

657. Gender-related Indicators of Well-being

Author:
Stephan Klasen
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper discusses the rationale as well as the challenges involved when constructing gender-related indicators of well-being. It argues that such indicators are critically important but that their construction involves a number of conceptual and measurement problems. Among the conceptual issues considered are the space in which gender inequality in well-being is to be measured, whether the indicators should track wellbeing of males and females separately or adjust overall measures of well-being by the gender inequality in well-being, whether gender equality in every indicator is necessarily the goal, how to assess gender inequality that is apparently desired by males and females, and what role indicators of agency or empowerment should play in genderrelated indicators of well-being. Among the most important measurement issues addressed are; the role of the household in allocating resources, the question of stocks versus flows, as well as significant data gaps when it comes to gender inequalities. Where appropriate, remedies to the conceptual and measurement issues are proposed. The paper also briefly reviews UNDP's gender-related indices to illustrate some of the challenges involved.
Topic:
Development, Gender Issues, Human Welfare, and Poverty

658. Conceptual and Measurement Issues in Poverty Analysis

Author:
Erik Thorbecke
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The objective of this paper is to review a number of issues related to poverty, while taking stock of the ongoing research. Most of the remaining unresolved issues in poverty analysis are related directly or indirectly to the dynamics of poverty. Before the development community can become more successful in designing and implementing poverty-alleviation strategies, within the context of growth, we need to understand better the conditions under which some households remain permanently (chronically) poor and how others move in and out of poverty. In what follows we review the state of the art under a number of interrelated headings: (1) Chronic vs. transient poverty; (2) Poverty and vulnerability; (3) The determination of the poverty line across time and countries; (4) The quantitative vs. qualitative approach to poverty measurement; and (5) Growth, inequality and poverty.
Topic:
Development, Economics, Human Welfare, and Poverty

659. Inequality and Welfare Evaluation of Heterogeneous Income Distributions

Author:
Anthony Shorrocks
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper establishes the principles which should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria—the 'equity preference' condition and the 'compensation principle'—are shown to be fundamentally incompatible. The paper favours the latter, thereby vindicating the traditional method of dealing with heterogeneous samples. However, inequality and welfare comparisons will usually be well defined only if equivalent incomes are obtained using constant scale factors; and researchers will need to distinguish clearly between inequality of nominal incomes and inequality of living standards. Furthermore, household observations must always be weighted according to family size.
Topic:
Demographics, Economics, Human Welfare, and Poverty

660. The Rise or Fall of World Inequality: A Spurious Controversy?

Author:
Bart Capéau and André Decoster
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
In the age of globalization, the question whether inequality in the world rose or fell down, is a hot topic. Leading scholars in the field of economic inequality measurement developed methods to estimate empirically the distribution of welfare (income) amongst world citizens. Despite their similar methodologies, they do not seem to agree about the conclusion. In the present paper we pinpoint what drives the two extreme positions apart. Sala-i-Martin (2002a, b), who claims that there can be no doubt that world inequality went down between the late 1970s and the late 1990s, has in fact calculated population weighted inequality between countries. Milanovic (2002a, b, c) does not deny this, but illustrates the empirical importance of divergent tendencies at the sub-national level (especially urban versus rural regions) for assessing true world inequality and comes to the reverse conclusion. Nevertheless, there seems to be unanimity, especially amongst the contributions quoted here, about the inequality measure(s) to be used for assessing world income distributions. We show that at least for international inequality, there is empirical evidence for rank reversals among the class of generalized entropy measures and expect the same to be true of world inequality. However, the normative debate about which inequality measure to use for assessing true world inequality has not yet begun.
Topic:
Development, Poverty, and Third World