EuroEconomica, Vol 34, No 1 (2015)

Abstract

This article studies the relationship between poverty, inequality and growth. In classical political economic model, we introduce a residual term to maintain the identity of the model.  It does not permit us to find the exact contribution of each factor. To derive the results of the decomposition, the Shapley value augmented by the fuzzy approach is used. In order to take its full advantage, it is of interest to calculate the marginal contribution of each factor in the variation of poverty. An application based on individual well-being data from Tunisian households is presented to illustrate use of the proposed concepts.