Business cycle; Cointegration; Government transfers; Poverty; USA
Abstract :
[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.
Disciplines :
Business & economic sciences: Multidisciplinary, general & others
Identifiers :
eid=2-s2.0-77956703866
Author, co-author :
Herzer, D.; Johann Wolfgang Goethe-University, Frankfurt am Main, Germany
Klump, Rainer ; University of Luxembourg > Rectorate > Rectorate
External co-authors :
yes
Language :
English
Title :
Poverty, government transfers, and the business cycle: Evidence for the United States
Publication date :
2009
Journal title :
Applied Econometrics and International Development
ISSN :
1578-4487
Publisher :
Euro-American Association of Economic Development Studies, Spain