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Poverty and Change in the Macroeconomy: A Dynamic Macroeconometric Model

The Review of Economics and Statistics 1993 75(1), 117
This paper analyzes the impact of macroeconomic activity on the level of poverty in the U.S. economy. The authors us e a macroeconometric model of poverty in the United States where the rat e of poverty is presumed to depend upon changes in various indicators of macroeconomic performance and policy. The authors empirically model the relationship between poverty and the macroeconomy with a hybrid mode l that employs a reduced-form model to capture the dynamic interaction s among the data and a structural economic model to describe the contemporaneous relationship between the variables.