In this study, the association between poverty rates and macroeconomic variables and the possibility of asymmetric effects were investigated using a first-degree difference poverty function. Time series data covers 26 years (1978-2004) on macroeconomic variables and poverty rate. Results showed a completely inelastic link between poverty and wage changes. But, inflation and unemployment elasticity of poverty rate was positive and significant. Results also indicated that poverty is more elastic respective to unemployment rates than to inflation. The relationship between poverty and unemployment was not found to be asymmetric with respect to the unemployment changes. However, the association between poverty and inflation rate was found to be asymmetric as poverty declined more with falling inflation rate than it increasing with rising inflation
Zibaei, M., & Shirvanian, A. (2009). Investigating the impacts of macroeconomic variables on rural and urban poverty rates in Iran. Agricultural Economics, 3(2), 15-36.
MLA
Mansour Zibaei; Abdorasoul Shirvanian. "Investigating the impacts of macroeconomic variables on rural and urban poverty rates in Iran". Agricultural Economics, 3, 2, 2009, 15-36.
HARVARD
Zibaei, M., Shirvanian, A. (2009). 'Investigating the impacts of macroeconomic variables on rural and urban poverty rates in Iran', Agricultural Economics, 3(2), pp. 15-36.
VANCOUVER
Zibaei, M., Shirvanian, A. Investigating the impacts of macroeconomic variables on rural and urban poverty rates in Iran. Agricultural Economics, 2009; 3(2): 15-36.
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