Stochastic Dominance Analysis for the Poverty in Tabalong Regency 2013 and 2017
DOI:
https://doi.org/10.21787/jbp.10.2018.01-12Keywords:
Tabalong, Stochastic Dominance, Poverty, Welfare, Cumulative Distribution FunctionAbstract
Although its issue could be addressed from of various perspectives over the years, poverty is the object of the government’s policy programs to be alleviated since the Indonesian independence. With the advancement of technology and science in the recent decades, the availability and the completeness of poverty data in Indonesia getting better. In fact, the policy-makers can assess the effectivity of their public-oriented programs easier by effectively utilizing the complete and up-to-date poverty data. However, in various approaches to poverty measurement, the Indonesian poverty data should be accompanied by another approach. This paper aims to evaluate the change of welfare of particular region over a period of several years by using the stochastic dominance method. This method also incorporates the price level impact into its poverty assessment through the extrapolated CPIs. To conduct the measurement, the National Socioeconomic Survey of Tabalong regency data, as well as the Tanjung city’s inflation in the period from 2013 to 2017, are employed. The results indicate that the welfare in 2017 is better than in 2013 since the distribution in 2017 stochastically dominates the distribution in 2013 at the first and second order at any possible level of poverty lines. Therefore, this result could also be the additional input for the poverty alleviation’s evaluation in order to provide a solid conclusion about the welfare changes.
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References
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Susilowati, S. H. (2010). Pendekatan Skala Ekivalensi untuk Mengukur Kemiskinan. Forum Penelitian Agro Ekonomi, 28(2), 91–105. http://doi.org/10.21082/fae.v28n2.2010.91-105
Suyanto, B. (2001). Kemiskinan dan Pemberdayaan Masyarakat Miskin. Masyarakat, Kebudayaan Dan Politik, XIV(4), 25–42. Retrieved from http://web.unair.ac.id/admin/file/f_19997_jr3.pdf
Tzeng, L. Y., Huang, R. J., & Shih, P.-T. (2013). Revisiting Almost Second-Degree Stochastic Dominance. Management Science, 59(5), 1250–1254. http://doi.org/10.1287/mnsc.1120.1616
Yalonetzky, G. (2013). Stochastic Dominance with Ordinal Variables: Conditions and a Test. Econometric Reviews, 32(1), 126–163. http://doi.org/10.1080/07474938.2012.690653
Araar, A. (2006). Poverty, Inequality and Stochastic Dominance, Theory and Practice: Illustration with Burkina Faso Surveys. CIRPEE Working Paper No. 06-34. http://doi.org/10.2139/ssrn.938555
Arndt, C., Hussain, A. M., Salvucci, V., Tarp, F., & Østerdal, L. P. (2016). Poverty Mapping Based on First-Order Dominance with an Example from Mozambique. Journal of International Development, 28(1), 3–21. http://doi.org/10.1002/jid.3200
Atkinson, A. B. (1987). On the Measurement of Poverty. Econometrica, 55(4), 749–764. http://doi.org/10.2307/1911028
Daskalakis, C., Deckelbaum, A., & Tzamos, C. (2015). Strong Duality for a Multiple-Good Monopolist. In Proceedings of the Sixteenth ACM Conference on Economics and Computation - EC ’15 (pp. 449–450). New York, New York, USA: ACM Press. http://doi.org/10.1145/2764468.2764539
Davidson, R. (2006). Stochastic Dominance (Departmental Working Papers). McGill University, Department of Economics. Retrieved from https://ideas.repec.org/p/mcl/mclwop/2006-19.html
Davidson, R., & Duclos, J.-Y. (2000). Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality. Econometrica, 68(6), 1435–1464. http://doi.org/10.1111/1468-0262.00167
Davidson, R., & Duclos, J.-Y. (2013). Testing for Restricted Stochastic Dominance. Econometric Reviews, 32(1), 84–125. http://doi.org/10.1080/07474938.2012.690332
Donald, S. G., & Hsu, Y.-C. (2016). Improving the Power of Tests of Stochastic Dominance. Econometric Reviews, 35(4), 553–585. http://doi.org/10.1080/07474938.2013.833813
DupaÄová, J., & Kopa, M. (2014). Robustness of optimal portfolios under risk and stochastic dominance constraints. European Journal of Operational Research, 234(2), 434–441. http://doi.org/10.1016/j.ejor.2013.06.018
Estudillo, J. P., Sawada, Y., & Otsuka, K. (2008). Poverty and Income Dynamics in Philippine Villages, 1985–2004. Review of Development Economics, 12(4), 877–890. http://doi.org/10.1111/j.1467-9361.2008.00458.x
Foster, J. E., & Shorrocks, A. F. (1988). Poverty Orderings and Welfare Dominance. In Distributive Justice and Inequality (pp. 91–110). Berlin, Heidelberg: Springer Berlin Heidelberg. http://doi.org/10.1007/978-3-642-73816-6_6
Foster, J., Greer, J., & Thorbecke, E. (1984). A Class of Decomposable Poverty Measures. Econometrica, 52(3), 761–766. http://doi.org/10.2307/1913475
Khomsan, A., Dharmawan, A. H., Saharuddin, Alfiasari, Sukandar, D., & Syarief, H. (2015). Indikator Kemiskinan dan Misklasifikasi Orang Miskin. Jakarta: Yayasan Pustaka Obor Indonesia.
Lanjouw, J. O. (1998). Demystifying Poverty Lines. Retrieved from http://siteresources.worldbank.org/PGLP/Resources/LanjouwDemystifyingPovertyLines.pdf
Levine, S., Muwonge, J., & Batana, Y. M. (2014). A Robust Multi-dimensional Poverty Profile for Uganda. Journal of Human Development and Capabilities, 15(4), 369–390. http://doi.org/10.1080/19452829.2014.897310
MacPherson, S., & Silburn, R. (1998). The meaning and measurement of poverty. In J. Dixon & D. Macarov (Eds.), Poverty: A Persistent Global Reality (pp. 1–19). London & New York: Routledge.
Madden, D., & Smith, F. (2000). Poverty in Ireland, 1987-1994: A Stochastic Dominance Approach. The Economic and Social Review, 31(3), 187–214. Retrieved from http://hdl.handle.net/2262/60131
Makdissi, P., & Wodon, Q. (2002). Consumption dominance curves: testing for the impact of indirect tax reforms on poverty. Economics Letters, 75(2), 227–235. http://doi.org/10.1016/S0165-1765(01)00599-7
Marbun, D., & Suryahadi, A. (2009). Kriteria Kemiskinan Konsumsi: Praktik di Indonesia dan Beberapa Catatan. Jurnal Analisis Sosial, 14(2), 13–30. Retrieved from http://www.akatiga.org/index.php/jurnal-analisis-sosial/item/468-jas-vol-14-no-2-menelusuri-kriteria-kemiskinan-perspektif-masyarakat-sipil
Pinar, M., Stengos, T., & Topaloglou, N. (2013). Measuring human development: a stochastic dominance approach. Journal of Economic Growth, 18(1), 69–108. http://doi.org/10.1007/s10887-012-9083-8
Ravallion, M. (1992). Does Undernutrition Respond to Incomes and Prices? Dominance Tests for Indonesia. The World Bank Economic Review, 6(1), 109–124. http://doi.org/10.1093/wber/6.1.109
Ravallion, M., & Huppi, M. (1991). Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period. The World Bank Economic Review, 5(1), 57–82. http://doi.org/10.1093/wber/5.1.57
Statistics Indonesia (BPS). (2009). Analisis Kemiskinan, Ketenagakerjaan dan Distribusi Pendapatan. Jakarta:
Statistics Indonesia (BPS). Retrieved from https://www.bps.go.id/publication/2009/03/04/bfe286bb431babaad062642f/analisis-kemiskinan-ketenagakerjaan-dan-distribusi-pendapatan.html
Statistics Indonesia (BPS). (2016). Penghitungan dan Analisis Kemiskinan Makro Indonesia Tahun 2016. Jakarta:
Statistics Indonesia (BPS). Retrieved from https://microdata.bps.go.id/mikrodata/index.php/citations/346
Statistics of South Kalimantan Province (BPS Provinsi Kalimantan Selatan). (2017). Jumlah Penduduk Miskin Menurut Kabupaten/Kota di Provinsi Kalimantan Selatan Tahun 1996-2016. Retrieved from https://kalsel.bps.go.id/dynamictable/2017/06/20/973/jumlah-penduduk-miskin-menurut-kabupaten-kota-di-provinsi-kalimantan-selatan-tahun-1996-2016.html
Susilowati, S. H. (2010). Pendekatan Skala Ekivalensi untuk Mengukur Kemiskinan. Forum Penelitian Agro Ekonomi, 28(2), 91–105. http://doi.org/10.21082/fae.v28n2.2010.91-105
Suyanto, B. (2001). Kemiskinan dan Pemberdayaan Masyarakat Miskin. Masyarakat, Kebudayaan Dan Politik, XIV(4), 25–42. Retrieved from http://web.unair.ac.id/admin/file/f_19997_jr3.pdf
Tzeng, L. Y., Huang, R. J., & Shih, P.-T. (2013). Revisiting Almost Second-Degree Stochastic Dominance. Management Science, 59(5), 1250–1254. http://doi.org/10.1287/mnsc.1120.1616
Yalonetzky, G. (2013). Stochastic Dominance with Ordinal Variables: Conditions and a Test. Econometric Reviews, 32(1), 126–163. http://doi.org/10.1080/07474938.2012.690653
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Published
2018-05-12
How to Cite
Murjani, A. (2018). Stochastic Dominance Analysis for the Poverty in Tabalong Regency 2013 and 2017. Jurnal Bina Praja, 10(1), 1–12. https://doi.org/10.21787/jbp.10.2018.01-12
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