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The author thanks Samir Jahjah, Mohsin Khan, Eduardo Ley, and Aude Pommeret for helpful discussions while she was working on this paper, and Andrew Feltenstein, Françoise Le Gall, Doris Ross, and seminar participants at the IMF for their comments and suggestions. All remaining errors are the author’s.
Using the 85 spells for which the change in the $1 a day poverty headcount is available in our data set, we obtain -2.8 as an estimate for the elasticity of poverty to growth.
Under the log-normal distribution, there is a direct relationship between inequality and the standard deviation of the income distribution which is given by: