Poverty in Egypt: Modeling and policy simulations

To our knowledge, there is no precursor to a multivariate modeling of the determinants of poverty for Egypt that allows for an analysis of the effect of some policy variable on poverty while controlling for other potential determinants. This article is organized as follows. The next section describes our approach to modeling the determinants of poverty. Section III describes the data, discusses our consumption-based measure of poverty, and introduces the explanatory variables used in our analysis. Section IV presents the regression results. Estimates for two versions of a model of living standards are presented, and, based on these regression estimates, Section V provides results for several policy simulations of antipoverty interventions. Some concluding remarks are offered in the final section. © 2005 by The University of Chicago. All rights reserved.