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Inter-country Comparisons of Poverty Based on Capability Approach: An Empirical Exercise

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Author Info

  • Sanjay Reddy

    () (Department of Economics, Barnard College, and Institute for Social and Economic Research and Policy, Columbia University)

  • Sujata Visaria

    () (Department of Economics, Boston University)

  • Muhammad Asali

    () (Department of Economics, Columbia University)

Abstract

In previous work Reddy and Pogge have argued that inter-country comparisons of income poverty based on poverty lines uniformly re?ecting the costs of the basic requirements of human beings are superior to the existing money-metric approaches. In this exercise, we implement a uniform approach to poverty assess- ment based on basic human capabilities for three countries: Nicaragua, Tanzania and Vietnam. We compute standard errors of the resulting poverty estimates and compare the incidence of poverty across these three countries. The choice of approach affects both cardinal estimates and ordinal rankings of poverty across countries and over time. Meaningful and coherent inter-country poverty com- parisons can be advanced through international co-ordination in survey design and in the construction of income poverty lines that uniformly re?ect the costs of the basic requirements of human beings.

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Bibliographic Info

Paper provided by Boston University - Department of Economics in its series Boston University - Department of Economics - Working Papers Series with number WP2006-038.

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Length: 26 pages
Date of creation: Jul 2006
Date of revision:
Handle: RePEc:bos:wpaper:wp2006-038

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Cited by:
  1. Alkire, Sabina, 2008. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," MPRA Paper 8862, University Library of Munich, Germany.
  2. Camelia Minoiu & Sanjay Reddy, 2008. "Kernel Density Estimation Based on Grouped Data: The Case of Poverty Assessment," IMF Working Papers 08/183, International Monetary Fund.
  3. Stephan Klasen, 2009. "Levels and Trends in Absolute Poverty in the World: What we know and what we don’t," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 11, Courant Research Centre PEG.
  4. Daniel Gottlieb & Alexander Fruman, 2011. "A quality-index of poverty measures," Working Papers 239, ECINEQ, Society for the Study of Economic Inequality.

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