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Estimating Lower Tail Dependence Between Pairs of Poverty Dimensions in Europe

Author

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  • Antonella D’agostino
  • Giovanni De Luca
  • Dominique Guégan
Abstract
This article provides an innovative method for measuring the dependence between pairs of poverty dimensions using a semiparametric copula approach that permits us to account for the importance of extreme low values. The association between pairs of poverty dimensions at the lower tail is easily measured using the parameter estimates of the specified parametric copula, and no further calculations are needed. This approach is used to measure the bivariate lower tail dependence between the dimensions of the AROPE rate in Europe at two time points (2009 and 2018). The findings reveal a statistically significant increase in the lower tail dependence between 2009 and 2018 in several European countries.

Suggested Citation

  • Antonella D’agostino & Giovanni De Luca & Dominique Guégan, 2023. "Estimating Lower Tail Dependence Between Pairs of Poverty Dimensions in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 419-442, June.
    • Handle: RePEc:bla:revinw:v:69:y:2023:i:2:p:419-442
    DOI: 10.1111/roiw.12565
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    References listed on IDEAS

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