A Unified Approach to Measuring Poverty and Inequality

Page 309

Appendix

Annual growth rate of lower partial means consumption expenditure (%)

Figure A.4: Generalized Lorenz Growth Curve for Urban Per Capita Expenditure, Georgia 0.2

0.15

0.1

0.05

0

–0.05 0

0.2 0.4 0.6 0.8 Percentile of per capita expenditure

1.0

Source: Based on ADePT Poverty and Inequality modules using Integrated Household Survey of Georgia 2003 and 2006.

the lower partial mean consumption expenditures and the horizontal axis reports the cumulative population share. A generalized Lorenz growth curve graphs the growth of lower partial mean per capita consumption expenditure for each population percentile. Thus, a generalized Lorenz growth curve indicates how every lower partial mean is changing over time.

General Mean Growth Curve Figure A.5 graphs the general mean growth curve for Georgia’s per capita expenditure. The vertical axis reports the annual growth rate of the general mean consumption expenditures and the horizontal axis reports parameter α, also known as a society’s degree of aversion toward inequality. A general mean growth curve graphs the growth of different general means and thus indicates how the general means are changing over time. The growth rate in mean per capita expenditure is the same as the growth rate of general mean at α = 1.

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