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By Nanak Kakwani

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Grusky and Kim A. 1 Big-class regime takes on a form consistent with class models and then ask whether the space takes on a form consistent with the income paradigm and other non-class models. Throughout this presentation, it should be borne in mind that our particular three-class specification is purely illustrative, merely one of the many class models that might be examined. Can standard big-class models capture the association in the poverty space? As we have argued, the implicit claim of class analysis is that the poverty space has a relatively low dimensionality, indeed a dimensionality no more or less than the number of postulated classes.

Boisvert (2000) ‘Measuring Household Food Vulnerability: Case Evidence from Northern Mali’. Working Paper, Department of Agricultural, Resource, and Managerial Economics, Cornell University. de Janvry, A. and E. Sadoulet (2005) ‘Designing Social Safety Net Programs to Directly Protect from Shocks the Assets of the Vulnerable’. Paper prepared for the World Bank/DFID Workshop on Growth and Risk, Leuven, June. Dercon, S. (1996) ‘Risk, Crop Choice, and Savings: Evidence from Tanzania’, Economic Development and Cultural Change, 44(3), 485–513.

The ‘hands on’ iterative interviewing technique generates hypotheses that can be formally and quantitatively tested by the more deductive quantitative methodology that relies on econometric and statistical tools. These hypotheses might be either confirmed or rejected after having been subjected to quantitative testing. If the hypotheses are rejected or only weakly confirmed, this information can be conveyed to practitioners of the PPA approach who could then try to generate new (modified) hypotheses to be tested subsequently by quantitative researchers.

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