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This paper analyses the impact of tourism on total and extreme monetary poverty, in order to illuminate the debate surrounding the links between tourism and poverty. We apply fixed effects models to panel data on the Peruvian departments for the period 2001–2013. We also identify the key factors in the tourism model affecting the empirical results. Our findings show that tourism is important for the poor, but its benefits do not reach the extreme poor to the same extent, and its potential is not fully exploited. The weak macroenvironment and low community participation impede poverty reduction through tourism.

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In this paper, it is demonstrated that coefficient of determination of an ANOVA linear model provides a measure of polarization. Taking as the starting point the link between polarization and dispersion, we reformulate the measure of polarization of Zhang and Kanbur using the decomposition of the variance instead of the decomposition of the Theil index. We show that the proposed measure is equivalent to the coefficient of determination of an ANOVA linear model that explains, for example, the income of the households as a function of any population characteristic such as education, gender, occupation, etc. This result provides an alternative way to analyse polarization by sub-populations characteristics and at the same time allows us to compare sub-populations via the estimated coefficients of the ANOVA model.

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