Determinants Of The Growth Semi-Elasticity Of Poverty Reduction

In this paper, the authors examine the mathematical relationship between growth and distributional change on absolute (i.e. percentage point) changes in FGT poverty measures assuming a log-normal income distribution, which they argue to be a conceptually superior and more policy-relevant measure than the much used 'Regular' growth elasticity of poverty reduction. They also test the empirical relationship of these semi-elasticities of growth and distributional change on poverty and find them to explain actual changes in poverty very well (in fact, much better than a related study by Bourguignon (2003) that studied the growth elasticity of poverty reduction).