Economists have long sought to predict how macroeconomic shocks will affect individual welfare. Macroeconomic data and forecasts are easily available when crises strike. But policy action requires not only understanding the magnitude of a macro shock, but also identifying which households or...

Are the determinants of chronic and transient poverty different? Do policies that reduce transient poverty also reduce chronic poverty? The authors decompose measures of household poverty into chronic and transient components and use censored conditional quantile estimators to investigate the...

The median voter hypothesis is important to endogenous growth theories because it provides the political mechanisms through which voters in more unequal countries re-distribute a greater proportion of income and thus (it is argued), by blunting incentives, reduce the country's growth rate. But...

Many agricultural regions in the developing world are subject to severe droughts, which can have devastating effects on household incomes and consumption, especially for the poor. To protect consumption, rural households engage in many different risk management strategies - some mainly...

Transfers to the rural land-poor are widely advocated and used in attempts to reduce rural poverty. Such transfers are believed to be productive, in that the final gain to the poor exceeds the initial transfer. The evidence cited most often to support this view is the negative correlation...

The authors examine how the food stamp program affected measures of poverty during devaluation of the Jamaican dollar in the early 1990s. They find that without the food stamp program, the poverty gap in Jamaica would have been much worse, especially in 1990 and 1991. For the country as a whole,...

The authors test how well consumption is insured against income risk in a panel of sampled households in rural China. They estimate the risk insurance models by Generalized Method of Moments, treating income and household size as endogenous. Insurance exists for all wealth groups, although the...

Pessimists say industrialization increased poverty; optimists say it did not. The authors argue that how much industrialization eradicates poverty depends on the form industrialization takes. It is not economic growth by itself, but the processes and policies associated with different growth...