Social Transfer Poverty Reduction Effect Calculator

Actual matched pre/post transfer poverty rates; signed difference, not causal transfer effectiveness without counterfactual design. Population/income definitions and applicable poverty lines independently harmonized.

Description

A pre/post-transfer poverty comparison requires matched definitions and populations.

A pre/post-transfer poverty comparison requires matched definitions and populations.1

A percentage-point reduction and a relative percentage reduction use different denominators.

When to use Social Transfer Poverty Reduction Effect Calculator

Use this tool to obtain signedPovertyReductionPercentagePoints, relativeReductionPercent from the supplied records using the stated calculation. Establish the population, period, variable definitions, sample coverage and independently applicable instrument or calibration.

How to use Social Transfer Poverty Reduction Effect Calculator and understand its results

  1. Establish the population, period, variable definitions, sample coverage and independently applicable instrument or calibration.
  2. Enter independentlyMatchedPreTransferPovertyPercent, independentlyMatchedPostTransferPovertyPercent, using the field meanings and rules below, then run the tool.
  3. Read result.signedPovertyReductionPercentagePoints, result.relativeReductionPercent. Use the units and sign conventions below, and review any unknown records separately.
  4. Correct any reported input issue and run again. Before using a successful result, check the stated units, signs, reference scope and observation coverage.
Input fieldMeaningValue typeRequirement
independentlyMatchedPreTransferPovertyPercentIndependently matched pre transfer poverty percentnumberRequired
independentlyMatchedPostTransferPovertyPercentIndependently matched post transfer poverty percentnumberRequired

Require pre-transfer poverty percent in (0,100] and post-transfer percent in [0,100]. Subtract post from pre for percentage points and divide that difference by pre for relative percent reduction. An increased post-transfer rate retains negative reductions.

differencePoints=prePercent−postPercent; relativeReductionPercent=100×differencePoints/prePercent

Use the matching field units and the exact boundary, ordering and reference rules above.

Output fieldMeaningValue type
resultCalculated observation or qualified referenceobject
result.signedPovertyReductionPercentagePointsSigned Poverty Reduction Percentage Points; preserve the subtraction order and sign defined in the mechanicsnumber
result.relativeReductionPercentPre-minus-post poverty percentage-point difference divided by pre-transfer rate, times 100.number
json
{
  "input": {
    "independentlyMatchedPreTransferPovertyPercent": 30,
    "independentlyMatchedPostTransferPovertyPercent": 20
  },
  "output": {
    "result": {
      "signedPovertyReductionPercentagePoints": 10,
      "relativeReductionPercent": 33.333333333333336
    }
  }
}

Limitations and assumptions

Population definitions, survey design, calibration and observation coverage are independently established. A result describes the supplied record or conditional model without demonstrating causation, validating an instrument or supplying representative population evidence.

Missing required fields, unknown fields, wrong types and violated rules return input issues. Numeric values and outputs must be finite. Extremely large composite outputs are rejected.

Alternative or Complementary methods

For a related step, use Reynolds-Smolensky Redistribution Effect Calculator: The Reynolds–Smolensky comparison subtracts post-tax inequality from pre-tax inequality. For a complementary comparison, use Poverty Headcount Ratio Calculator: A poverty headcount rate counts assessed people below an applicable poverty line.

References

  1. Social Transfer Poverty Reduction Effect Calculator — tool.io

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