'The rich are just like us, only richer': Poverty functions or consumption functions?

Simon Appleton

doi:10.1093/jae/10.4.433

'The rich are just like us, only richer': Poverty functions or consumption functions?

Simon Appleton

Research output: Journal Publication › Article › peer-review

14 Citations (Scopus)

Abstract

The reduced form determinants of economic welfare, proxied by consumption, are modelled using the first nationally representative household survey of Uganda. It is investigated whether anything is gained by modelling poverty rather than welfare, when poverty is measured by the poverty gap. Parameters from the tobit poverty function are found to be generally similar to those from consumption functions, indicating that the poor receive comparable rates of return on their assets to the non-poor. The main exception is that the return to labour is significantly lower for the poor, even with many controls.

Original language	English
Pages (from-to)	433-469
Number of pages	37
Journal	Journal of African Economies
Volume	10
Issue number	4
DOIs	https://doi.org/10.1093/jae/10.4.433
Publication status	Published - 2001
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty

ASJC Scopus subject areas

Development
Economics and Econometrics

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10.1093/jae/10.4.433

Cite this

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title = "'The rich are just like us, only richer': Poverty functions or consumption functions?",

abstract = "The reduced form determinants of economic welfare, proxied by consumption, are modelled using the first nationally representative household survey of Uganda. It is investigated whether anything is gained by modelling poverty rather than welfare, when poverty is measured by the poverty gap. Parameters from the tobit poverty function are found to be generally similar to those from consumption functions, indicating that the poor receive comparable rates of return on their assets to the non-poor. The main exception is that the return to labour is significantly lower for the poor, even with many controls.",

author = "Simon Appleton",

note = "Funding Information: 1 I would like to thank the Statistics Department of the Ugandan Ministry of Finance and Economic Planning for access to the data-set. The research was funded by a World Bank project financed by the Swedish International Development Administration. Earlier versions were presented at seminars at the Centre for the Study of African Economies (CSAE), the Institute of Development Studies and the Economic Policy Research Centre, Kampala. The paper was written while the author was a member of the CSAE, a Designated Research Centre of the Economic and Social Research Council. Lionel Demery and my project collaborators provided valuable comments, although the usual caveats remain.",

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N2 - The reduced form determinants of economic welfare, proxied by consumption, are modelled using the first nationally representative household survey of Uganda. It is investigated whether anything is gained by modelling poverty rather than welfare, when poverty is measured by the poverty gap. Parameters from the tobit poverty function are found to be generally similar to those from consumption functions, indicating that the poor receive comparable rates of return on their assets to the non-poor. The main exception is that the return to labour is significantly lower for the poor, even with many controls.

AB - The reduced form determinants of economic welfare, proxied by consumption, are modelled using the first nationally representative household survey of Uganda. It is investigated whether anything is gained by modelling poverty rather than welfare, when poverty is measured by the poverty gap. Parameters from the tobit poverty function are found to be generally similar to those from consumption functions, indicating that the poor receive comparable rates of return on their assets to the non-poor. The main exception is that the return to labour is significantly lower for the poor, even with many controls.

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ER -

'The rich are just like us, only richer': Poverty functions or consumption functions?

Abstract

UN SDGs

ASJC Scopus subject areas

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