Premature mortality and poverty measurement in an OLG economy
1
BETA -
Bureau d'Économie Théorique et Appliquée
2 PJSE - Paris Jourdan Sciences Economiques
3 PSE - Paris School of Economics
4 Université de Liège
5 CORE - Center of Operation Research and Econometrics [Louvain]
6 IUF - Institut universitaire de France
7 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
2 PJSE - Paris Jourdan Sciences Economiques
3 PSE - Paris School of Economics
4 Université de Liège
5 CORE - Center of Operation Research and Econometrics [Louvain]
6 IUF - Institut universitaire de France
7 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
Grégory Ponthière
- Fonction : Auteur
- PersonId : 1129355
- ORCID : 0000-0002-7328-4441
- IdRef : 189782714
Résumé
Following Kanbur and Mukherjee (Bull Econ Res 59(4):339–359 2007), a solution to the “missing poor” problem (i.e., selection bias in poverty measures due to income-differentiated mortality) consists in computing hypothetical poverty rates while assigning a fictitious income to the prematurely dead. However, in a dynamic general equilibrium economy, doing “as if” the prematurely dead were still alive is likely to affect wages, output and capital accumulation, with an uncertain effect on poverty. We develop a three-period OLG model with income-differentiated mortality and compare actual poverty rates with hypothetical poverty rates that would have prevailed if everyone faced the survival conditions of the top income class. Including the prematurely dead has an ambiguous impact on poverty, since it affects income distribution through capital dilution, composition effects, and horizon effects. Our results are illustrated by quantifying the impact of income-differentiated mortality on poverty measures for France (1820–2010).
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Résumé |
en
Following Kanbur and Mukherjee (Bull Econ Res 59(4):339–359 2007), a solution to the “missing poor” problem (i.e., selection bias in poverty measures due to income-differentiated mortality) consists in computing hypothetical poverty rates while assigning a fictitious income to the prematurely dead. However, in a dynamic general equilibrium economy, doing “as if” the prematurely dead were still alive is likely to affect wages, output and capital accumulation, with an uncertain effect on poverty. We develop a three-period OLG model with income-differentiated mortality and compare actual poverty rates with hypothetical poverty rates that would have prevailed if everyone faced the survival conditions of the top income class. Including the prematurely dead has an ambiguous impact on poverty, since it affects income distribution through capital dilution, composition effects, and horizon effects. Our results are illustrated by quantifying the impact of income-differentiated mortality on poverty measures for France (1820–2010).
|
Titre |
en
Premature mortality and poverty measurement in an OLG economy
|
Auteur(s) |
Mathieu Lefèbvre
1
, Pierre Pestieau
2, 3, 4, 5
, Grégory Ponthière
2, 3, 6, 7
1
BETA -
Bureau d'Économie Théorique et Appliquée
( 93745 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
2
PJSE -
Paris Jourdan Sciences Economiques
( 1171428 )
- 48 boulevard Jourdan 75014 Paris
- France
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
4
Université de Liège
( 93075 )
- Place du 20-Août, 7 4000 Liège
- Belgique
5
CORE -
Center of Operation Research and Econometrics [Louvain]
( 48233 )
- 34, Voie du Roman Pays B-1348 Louvain-la-Neuve
- Belgique
6
IUF -
Institut universitaire de France
( 56663 )
- Maison des Universités 103 Boulevard Saint-Michel 75005 Paris
- France
7
ERUDITE -
Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
( 74242 )
- UPEM, 5 boulevard Descartes, 77454 Marne-la-Vallée CEDEX 2
UPEC - Faculté de sciences économiques et de gestion
Mail des mèches Rue Poète et Sellier 94010 Créteil Cedex
- France
|
Audience |
Internationale
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Volume |
32
|
Page/Identifiant |
621-664
|
Numéro |
2
|
Date de publication |
2019-04
|
Nom de la revue |
|
Domaine(s) |
|
DOI | 10.1007/s00148-018-0688-x |
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