Next Article in Journal / Special Issue
Top Incomes and Inequality Measurement: A Comparative Analysis of Correction Methods Using the EU SILC Data
Previous Article in Journal / Special Issue
Decomposing Wage Distributions Using Recentered Influence Function Regressions
Open AccessArticle

The Wall’s Impact in the Occupied West Bank: A Bayesian Approach to Poverty Dynamics Using Repeated Cross-Sections

by Tareq Sadeq 1,2 and Michel Lubrano 2,*
1
Department of Economics, Birzeit University, Birzeit, West Bank 627, Palestine
2
Aix-Marseille Univ., CNRS, EHESS, Centrale Marseille, AMSE, Ilot Bernard Dubois, 5 Bd Maurice Bourdet, 13001 Marseille, France
*
Author to whom correspondence should be addressed.
Econometrics 2018, 6(2), 29; https://doi.org/10.3390/econometrics6020029
Received: 3 December 2017 / Revised: 7 May 2018 / Accepted: 22 May 2018 / Published: 30 May 2018
(This article belongs to the Special Issue Econometrics and Income Inequality)
In 2002, the Israeli government decided to build a wall inside the occupied West Bank. The wall had a marked effect on the access to land and water resources as well as to the Israeli labour market. It is difficult to include the effect of the wall in an econometric model explaining poverty dynamics as the wall was built in the richer region of the West Bank. So a diff-in-diff strategy is needed. Using a Bayesian approach, we treat our two-period repeated cross-section data set as an incomplete data problem, explaining the income-to-needs ratio as a function of time invariant exogenous variables. This allows us to provide inference results on poverty dynamics. We then build a conditional regression model including a wall variable and state dependence to see how the wall modified the initial results on poverty dynamics. We find that the wall has increased the probability of poverty persistence by 58 percentage points and the probability of poverty entry by 18 percentage points. View Full-Text
Keywords: Bayesian inference; pseudo panels; data augmentation; walls; poverty dynamics Bayesian inference; pseudo panels; data augmentation; walls; poverty dynamics
Show Figures

Figure 1

MDPI and ACS Style

Sadeq, T.; Lubrano, M. The Wall’s Impact in the Occupied West Bank: A Bayesian Approach to Poverty Dynamics Using Repeated Cross-Sections. Econometrics 2018, 6, 29.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop