A Note on the Simple Algebra of the Shared Prosperity Indicator

One of the two goals of the World Bank Group's new strategy is to promote shared prosperity, defined as the income growth of the bottom 40 percent of the population. The simple monitoring indicator then is the income per capita of the bottom 4...

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Main Authors:	Rosenblatt, David, McGavock, Tamara J.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ANNUAL GROWTH AVERAGE INCOME AVERAGE INCOMES COUNTRY DATA COUNTRY EXPERIENCES CROSS-COUNTRY DIFFERENCES DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIFFERENCES IN INCOME DISTRIBUTION OF INCOME ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EXTREME POVERTY GDP GDP PER CAPITA GINI COEFFICIENT GROWTH MODEL GROWTH RATE GROWTH RATES HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME LEVEL INCOME LEVELS INCOME SHARE INCOMES INEQUALITY INEQUALITY AVERSION INEQUALITY MEASURE INEQUALITY MEASURES JOB CREATION LIVING STANDARDS LOCAL CURRENCY LONG-RUN GROWTH LORENZ CURVE NATURAL RESOURCE NEGATIVE RELATIONSHIP NEGATIVE VALUE OLD ISSUES PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POOR POOR COUNTRIES POOR COUNTRY POOR PEOPLE POPULATION GROWTH POPULATION SHARE POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY RATE POWER PARITY PURCHASING POWER PURE GROWTH REDUCING INEQUALITY REDUCING POVERTY RELATIVE INEQUALITY RELATIVE ROLE RICH COUNTRIES SIGNIFICANT EFFECT SOCIAL PROGRAMS WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2013/10/18365080/note-simple-algebra-shared-prosperity-indicator http://hdl.handle.net/10986/16860

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spelling	okr-10986-168602021-04-23T14:03:32Z A Note on the Simple Algebra of the Shared Prosperity Indicator Rosenblatt, David McGavock, Tamara J. ANNUAL GROWTH AVERAGE INCOME AVERAGE INCOMES COUNTRY DATA COUNTRY EXPERIENCES CROSS-COUNTRY DIFFERENCES DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIFFERENCES IN INCOME DISTRIBUTION OF INCOME ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EXTREME POVERTY GDP GDP PER CAPITA GINI COEFFICIENT GROWTH MODEL GROWTH RATE GROWTH RATES HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME LEVEL INCOME LEVELS INCOME SHARE INCOMES INEQUALITY INEQUALITY AVERSION INEQUALITY MEASURE INEQUALITY MEASURES JOB CREATION LIVING STANDARDS LOCAL CURRENCY LONG-RUN GROWTH LORENZ CURVE NATURAL RESOURCE NEGATIVE RELATIONSHIP NEGATIVE VALUE OLD ISSUES PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POOR POOR COUNTRIES POOR COUNTRY POOR PEOPLE POPULATION GROWTH POPULATION SHARE POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY RATE POWER PARITY PURCHASING POWER PURE GROWTH REDUCING INEQUALITY REDUCING POVERTY RELATIVE INEQUALITY RELATIVE ROLE RICH COUNTRIES SIGNIFICANT EFFECT SOCIAL PROGRAMS WORLD DEVELOPMENT INDICATORS One of the two goals of the World Bank Group's new strategy is to promote shared prosperity, defined as the income growth of the bottom 40 percent of the population. The simple monitoring indicator then is the income per capita of the bottom 40 percent of the population. The growth of this indicator can be decomposed into two components: the change in the share of total income accruing to the bottom 40 percent and the growth of the average income of the total population. This paper presents: (i) a brief discussion of the properties of the indicator; (ii) the simple decomposition in algebraic form; (iii) a graphical method for displaying the combinations of the two components of the decomposition; (iv) simulations of the decomposition for hypothetical countries; and (v) some illustrative data. 2014-02-04T16:46:02Z 2014-02-04T16:46:02Z 2013-10 http://documents.worldbank.org/curated/en/2013/10/18365080/note-simple-algebra-shared-prosperity-indicator http://hdl.handle.net/10986/16860 English en_US Policy Research Working Paper;No. 6645 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ANNUAL GROWTH AVERAGE INCOME AVERAGE INCOMES COUNTRY DATA COUNTRY EXPERIENCES CROSS-COUNTRY DIFFERENCES DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIFFERENCES IN INCOME DISTRIBUTION OF INCOME ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EXTREME POVERTY GDP GDP PER CAPITA GINI COEFFICIENT GROWTH MODEL GROWTH RATE GROWTH RATES HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME LEVEL INCOME LEVELS INCOME SHARE INCOMES INEQUALITY INEQUALITY AVERSION INEQUALITY MEASURE INEQUALITY MEASURES JOB CREATION LIVING STANDARDS LOCAL CURRENCY LONG-RUN GROWTH LORENZ CURVE NATURAL RESOURCE NEGATIVE RELATIONSHIP NEGATIVE VALUE OLD ISSUES PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POOR POOR COUNTRIES POOR COUNTRY POOR PEOPLE POPULATION GROWTH POPULATION SHARE POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY RATE POWER PARITY PURCHASING POWER PURE GROWTH REDUCING INEQUALITY REDUCING POVERTY RELATIVE INEQUALITY RELATIVE ROLE RICH COUNTRIES SIGNIFICANT EFFECT SOCIAL PROGRAMS WORLD DEVELOPMENT INDICATORS
spellingShingle	ANNUAL GROWTH AVERAGE INCOME AVERAGE INCOMES COUNTRY DATA COUNTRY EXPERIENCES CROSS-COUNTRY DIFFERENCES DEMOCRACY DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT ECONOMICS DEVELOPMENT INDICATORS DEVELOPMENT POLICY DEVELOPMENT RESEARCH DIFFERENCES IN INCOME DISTRIBUTION OF INCOME ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC POLICY EMERGING MARKET EMERGING MARKET ECONOMIES EMPIRICAL EVIDENCE EXTREME POVERTY GDP GDP PER CAPITA GINI COEFFICIENT GROWTH MODEL GROWTH RATE GROWTH RATES HOUSEHOLD INCOME HOUSEHOLD SURVEYS HUMAN DEVELOPMENT INCOME INCOME DISTRIBUTION INCOME GROWTH INCOME LEVEL INCOME LEVELS INCOME SHARE INCOMES INEQUALITY INEQUALITY AVERSION INEQUALITY MEASURE INEQUALITY MEASURES JOB CREATION LIVING STANDARDS LOCAL CURRENCY LONG-RUN GROWTH LORENZ CURVE NATURAL RESOURCE NEGATIVE RELATIONSHIP NEGATIVE VALUE OLD ISSUES PER CAPITA GROWTH PER CAPITA INCOME POLICY DISCUSSIONS POLICY IMPLICATIONS POLICY RESEARCH POOR POOR COUNTRIES POOR COUNTRY POOR PEOPLE POPULATION GROWTH POPULATION SHARE POVERTY LEVELS POVERTY LINE POVERTY LINES POVERTY MEASURE POVERTY RATE POWER PARITY PURCHASING POWER PURE GROWTH REDUCING INEQUALITY REDUCING POVERTY RELATIVE INEQUALITY RELATIVE ROLE RICH COUNTRIES SIGNIFICANT EFFECT SOCIAL PROGRAMS WORLD DEVELOPMENT INDICATORS Rosenblatt, David McGavock, Tamara J. A Note on the Simple Algebra of the Shared Prosperity Indicator
relation	Policy Research Working Paper;No. 6645
description	One of the two goals of the World Bank Group's new strategy is to promote shared prosperity, defined as the income growth of the bottom 40 percent of the population. The simple monitoring indicator then is the income per capita of the bottom 40 percent of the population. The growth of this indicator can be decomposed into two components: the change in the share of total income accruing to the bottom 40 percent and the growth of the average income of the total population. This paper presents: (i) a brief discussion of the properties of the indicator; (ii) the simple decomposition in algebraic form; (iii) a graphical method for displaying the combinations of the two components of the decomposition; (iv) simulations of the decomposition for hypothetical countries; and (v) some illustrative data.
format	Publications & Research :: Policy Research Working Paper
author	Rosenblatt, David McGavock, Tamara J.
author_facet	Rosenblatt, David McGavock, Tamara J.
author_sort	Rosenblatt, David
title	A Note on the Simple Algebra of the Shared Prosperity Indicator
title_short	A Note on the Simple Algebra of the Shared Prosperity Indicator
title_full	A Note on the Simple Algebra of the Shared Prosperity Indicator
title_fullStr	A Note on the Simple Algebra of the Shared Prosperity Indicator
title_full_unstemmed	A Note on the Simple Algebra of the Shared Prosperity Indicator
title_sort	note on the simple algebra of the shared prosperity indicator
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2013/10/18365080/note-simple-algebra-shared-prosperity-indicator http://hdl.handle.net/10986/16860
_version_	1764434724008230912

A Note on the Simple Algebra of the Shared Prosperity Indicator

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