Séminaire Mathématique de Béjaia
Volume 14, Numéro 1, Pages 31-34
2015-12-31

Analysis Of Poverty Dynamics In Mozambique By Markov Chains And Pseudo Panels

Authors : Rabta Boualem .

Abstract

In this paper, we explore household poverty dynamics in Mozambique. We construct a pseudo-panel from recurrent cross-section surveys based on a matching procedure with respect to time invariant characteristics. To describe the poverty dynamics in the pseudo-panel we use continuous time Markov-chain theory. It appears a powerful tool to estimate poverty measures beyond the commonly reported transition probabilities. The added measures include the stationary situation, the sojourn time in a certain poverty state and an index of mobility.We also provide probit regression results identifying the factors that influence the movements between poverty states.

Keywords

Poverty dynamics ; pseudo panel data, continuous time Markov chain ; stationary measures, Mozambique