Macroeconomic crises and poverty monitoring: A case study for India

Gaurav Datt, Martin Ravallion

Research output: Contribution to journalArticleResearchpeer-review

24 Citations (Scopus)

Abstract

Survey-based welfare indicators can fluctuate over time in ways which have little to do with macroeconomic changes in the economy. So basing policy decisions on short-term movements in such welfare indicators can be hazardous. There was a sharp increase in India's poverty measures in the aftermath of the mid-1991 crisis and the ensuing stabilization program. However, only one-tenth of the increase in measured poverty is explicable in terms of the variables one would expect to transmit the shock to poor people. Poverty measures soon returned to their pre-reform levels, belying the notion of a structural break induced by reforms.

Original languageEnglish
Pages (from-to)135-152
Number of pages18
JournalReview of Development Economics
Volume1
Issue number2
DOIs
Publication statusPublished - 1 Jan 1997
Externally publishedYes

Cite this