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Poverty comparisons with dependent samples
Author(s) -
Zheng Buhong
Publication year - 2004
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.779
Subject(s) - poverty , inference , econometrics , economics , sample (material) , welfare , dependency (uml) , test (biology) , welfare dependency , public economics , computer science , economic growth , market economy , chemistry , software engineering , chromatography , artificial intelligence , paleontology , biology
Standard inference procedures for poverty comparisons require samples to be independent. For many commonly used income samples, however, this requirement is not fulfilled since samples are rotated. This article introduces an easy‐to‐use method of correction for sample dependency. We also apply the method to test changes in US poverty in the 1990s and to evaluate the marginal effects of public assistance on poverty before and after the recent welfare reform. Copyright © 2004 John Wiley & Sons, Ltd.