Actual exit time from poverty
DOI:
https://doi.org/10.24201/ee.v0i0.377Keywords:
poverty measurement, actual exit time, minimum neccessary growth rateAbstract
We develop a methodology to estimate the actual exit time from poverty and the minimum necessary growth rate to eradicate it in a predetermined period of time without assuming distributionally neutral income growth. We compare the exit time for the average poor (Kanbur, 1987) and the average exit time (Morduch, 1998) with the actual exit time in terms of their sensitivity to the distribution of income below the poverty line. The methodology is applied to rural areas in Mexico.
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