Reference : Poverty, government transfers, and the business cycle: Evidence for the United States
Scientific journals : Article
Business & economic sciences : Multidisciplinary, general & others
http://hdl.handle.net/10993/27863
Poverty, government transfers, and the business cycle: Evidence for the United States
English
Herzer, D. [Johann Wolfgang Goethe-University, Frankfurt am Main, Germany]
Klump, Rainer mailto [University of Luxembourg > Rectorate > Rectorate]
2009
Applied Econometrics and International Development
9
2
127-147
Yes
15784487
[en] Business cycle ; Cointegration ; Government transfers ; Poverty ; USA
[en] We examine the impact of government transfers and the business cycle on poverty in the United States in the context of a poverty function that includes the official poverty rate, three types of government transfers, real wages, the number of female-headed families, and a business cycle variable. Using cointegration techniques, we find - contrary to most previous studies - that government transfer programs play an important poverty-reducing role. In addition, the findings suggest that the business cycle is one of the key variables in explaining poverty in the US. Furthermore, the empirical results show that the size and composition of public transfer payments change over the business cycle. We also find poverty to have a significant effect on government transfers, the business cycle, and the structure of households.
http://hdl.handle.net/10993/27863

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