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On the Choice of Appropriate Consumer Price Indices and Data Sets for Estimating the Incidence of Poverty in India

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Author Info
B. S. Minhas (Indian Statistical Institute, New Delhi)
L. R. Jain (Indian Statistical Institute, New Delhi)
S. M. Kansal (Indian Statistical Institute, New Delhi)
M. R. Saluja (Indian Statistical Institute, New Delhi)
Abstract

After reviewing the available data sets and price deflators used by the Planning Commission for estimation of poverty, this paper constructs some new consumer price indices which are considered more appropriate for updating the base year poverty lines. Three major factors, which crucially affect the poverty computation, have been identified and sensitivity analysis has been attempted to show the separate impact of each of these factors on the poverty estimates. Our analysis shows that the official estimates of poverty incidence suffer from many serious shortcomings, which lead to underestimation of the incidence of poverty in the country. Some suggestions for further research have also been made.

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Publisher Info
Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 22 (1987)
Issue (Month): 1 (January)
Pages: 19-49
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Handle: RePEc:dse:indecr:v:22:y:1987:i:1:p:19-49

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  1. Datt, Gaurav & Ravallion, Martin, 1998. "Farm productivity and rural poverty in India," FCND discussion papers 42, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. Basanta K. Pradhan & M.R. Saluja, 1998. "An Assessment of Poverty Studies in India with Special Reference to Economic Reforms," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(4), pages 1081-1102. [Downloadable!]
  3. T. Krishna Kumar & Sushanta Mallick & Jayarama Holla, 2007. "Estimating Consumption Deprivation in India using Survey Data: A State-Level Rural-Urban Analysis before and during Reform Period," Working Papers 7, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
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