A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case
1
Department of Economics, University of Alcalá, 28802 Alcalá de Henares, Spain
2
Department of Applied Economics, University of Valladolid, 47011 Valladolid, Spain
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(5), 1728; https://doi.org/10.3390/su12051728
Received: 23 January 2020
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Revised: 21 February 2020
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Accepted: 21 February 2020
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Published: 25 February 2020
(This article belongs to the Special Issue Economic Growth, Energy Consumption and Sustainable Development: The Case of Mediterranean Region)
In this paper, we analyze, in a novel way, the nature of economic growth in Spain after the Great Recession, in relation to its effect on poverty reduction. We use a statistical test to analyze the pro-poorness nature of economic growth using a stochastic dominance approach, not used in this context so far. We decompose changes in the difference in generalized Lorenz ordinates into a growth effect and an inequality effect and apply this to formal Spanish income data statistical tests based on dominance methods. We found that growth was pro-poor in Spain as a whole between 2013 and 2017. As regards regional growth effects, we conclude that growth was weakly pro-poor in seven of Spain’s 17 regions, it was neither pro-poor nor anti-poor in nine regions, and only weakly anti-poor in one region.
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Keywords:
pro-poor growth; poverty; stochastic dominance; Spanish regions
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MDPI and ACS Style
Ahamdanech, I.; García-Pérez, C.; Prieto-Alaiz, M. A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case. Sustainability 2020, 12, 1728. https://doi.org/10.3390/su12051728
AMA Style
Ahamdanech I, García-Pérez C, Prieto-Alaiz M. A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case. Sustainability. 2020; 12(5):1728. https://doi.org/10.3390/su12051728
Chicago/Turabian StyleAhamdanech, Ismael, Carmelo García-Pérez, and Mercedes Prieto-Alaiz. 2020. "A Stochastic Dominance Approach to Evaluating Pro-Poor Growth—An Application to the Spanish Case" Sustainability 12, no. 5: 1728. https://doi.org/10.3390/su12051728
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