The European Journal of Development Research

, Volume 27, Issue 1, pp 37–66 | Cite as

Macroeconomic Fundamentals of Poverty and Deprivation: An Empirical Study for Developed Countries

  • Ana Paula Ribeiro
  • Sandra Tavares Silva
  • Duarte Guimarães
Original Article

Abstract

This study provides a relevant contribution to literature on the macroeconomic determinants of multidimensional deprivation in developed countries; this type of analysis is not as frequent in the literature as that explaining poverty stricto sensu. After a review of the macroeconomic mechanisms of poverty, we propose a composite index to capture multidimensional poverty as to allow a comparative assessment of deprivation across European Union countries. Relying on the macroeconomic transmission mechanisms that influence poverty, a panel data econometric approach is implemented to study the relation between the proposed composite index and macroeconomic variables. Results show that a multidimensional poverty concept is relevant for assessing deprivation in Europe and that the dynamics of main macroeconomic variables crucially affect deprivation performances. The latter result is robust, holding for different poverty measures.

Keywords

poverty deprivation macroeconomic transmission poverty indexes panel data European Union 

Abstract

Cette étude contribue de manière pertinente à la littérature sur les déterminants macroéconomiques de la pauvreté multidimensionnelle dans les pays développés; dans la littérature économique, ce type d’analyse n’est pas aussi fréquent que celle qui cherche à expliquer la pauvreté au sens strict. Après une revue des mécanismes macroéconomiques de la pauvreté, nous proposons un indice composite qui reflète la pauvreté multidimensionnelle afin d’effectuer une évaluation comparative de la pauvreté dans les pays de l’Union Européenne. En se basant sur les mécanismes macroéconomiques de transmission qui influencent la pauvreté, une approche économétrique longitudinale est utilisée pour étudier la relation entre l’indice composite proposé et des variables macroéconomiques. Les résultats montrent que le concept de pauvreté multidimensionnelle est pertinent dans l’évaluation de la pauvreté en Europe et que les dynamiques des principales variables macroéconomiques affectent de façon significative les manifestations de la pauvreté. Ce dernier résultat est robuste et est valable pour différentes mesures de la pauvreté.

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Copyright information

© European Association of Development Research and Training Institutes 2014

Authors and Affiliations

  • Ana Paula Ribeiro
    • 1
  • Sandra Tavares Silva
    • 1
  • Duarte Guimarães
    • 1
  1. 1.Universidade do PortoPortoPortugal

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