IS THERE A RELATION BETWEEN INCOME LEVEL, INEQUALITY AND POVERTY? A STUDY FROM ELASTICITIES
DOI:
https://doi.org/10.5902/1414650913947Keywords:
Economic growth, income inequality, poverty, panel data.Abstract
The purpose of this research is to analyze how economic growth, income inequality and poverty relate to each other, in view of the pointed raised in the literature for the preparation and conduct of social policies that seek to combat poverty and improving the distribution income population. Will use data on federal units of Brazil for the period 1995 to 2009 to estimate the elasticities income-poverty, redistribution-poverty, income-inequality and poverty-inequality through methodology of panel data (fixed effects, random effects and first differences). The results indicate that public policies aimed at more equitable income distribution are more effective in reducing poverty, compared to only seeking increased income. On the other hand, policies aimed at reducing poverty are more effective in combating inequality than those toward increasing income.
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