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Poverty, relative to the ability to eradicate it: An index of poverty reduction failure

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  • Kanbur, Ravi
  • Mukherjee, Diganta

Abstract

In this note we approach the question of relative poverty from a different angle. Fixing the poverty line, we ask: What is the extent of poverty relative to the resources available in the society to eradicate it? We argue that the same level of poverty is “worse” if the resources available to address it are greater. We characterize a class of indices that measure Poverty Reduction Failure and provide an empirical illustration of their suitability using data for 94 country observations in 2001.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 97 (2007)
Issue (Month): 1 (October)
Pages: 52-57

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Handle: RePEc:eee:ecolet:v:97:y:2007:i:1:p:52-57

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  1. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
  2. Shaohua Chen & Martin Ravallion, 2004. "How Have the World's Poorest Fared since the Early 1980s?," World Bank Research Observer, World Bank Group, vol. 19(2), pages 141-169.
  3. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
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Cited by:
  1. Merwan Engineer & Nilanjana Roy & Sari Fink, 2010. "Healthy Human Development Indices," Department Discussion Papers 1001, Department of Economics, University of Victoria.
  2. Martin Ravallion, 2011. "Do Poorer Countries Have Less Capacity for Redistribution?," One Pager Chinese 97, International Policy Centre for Inclusive Growth.
  3. Alessandra Michelangeli & Eugenio Peluso & Alain Trannoy, 2011. "Detecting a change in wealth concentration without the knowledge of the wealth distribution," Journal of Economic Inequality, Springer, vol. 9(3), pages 373-391, September.
  4. Chakravarty, Satya R. & D'Ambrosio, Conchita, 2013. "An axiomatic approach to the measurement of poverty reduction failure," Economic Modelling, Elsevier, vol. 35(C), pages 874-880.
  5. Sumner, Andy, 2012. "Where Do The Poor Live?," World Development, Elsevier, vol. 40(5), pages 865-877.
  6. Lind, Jo Thori & Moene, Karl O., 2009. "Miserly Developments," Memorandum 04/2009, Oslo University, Department of Economics.

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