Consistent comparison of pro-poor growth

Abstract

This article contributes to the literature of pro-poor growth measurement by introducing and characterizing a growth-rate consistency axiom. The axiom states that if one growth pattern is judged to be more pro-poor than another growth pattern at a given growth rate, then the pro-poor ranking between the two growth patterns should remain the same at a higher growth rate. We show that summary pro-poor measures such as poverty-growth elasticities may violate this axiom. We then characterize a special dominance condition under which a given summary pro-poor measure will satisfy the growth-rate consistency axiom. Finally, we establish a general growth-rate dominance condition under which all summary pro-poor measures will respect the growth-rate consistency axiom.