A Behaviour-based Approach to the Estimation of Poverty in India
AbstractSince the late 1970s, the price indices underlying the poverty lines in India have been updated using aggregate indices. Widespread criticism of these indices led to the adoption of a new official methodology in 2011 based on unit values from consumption survey data. We propose an alternative approach that identifies poverty from consumer behaviour, based on the notion that equally poor households spend the same proportion of their incomes on food. Compared with official estimates, we find higher levels of poverty in eastern India, and generally, smaller reductions in poverty from 2005 to 2010. Our poverty numbers are validated by the calorie composition of households around the poverty lines and self-reported hunger.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 4122.
Date of creation: 2013
Date of revision:
Other versions of this item:
- Ingvild Almas & Anders Kjelsrud & Rohini Somanathan, 2013. "A Behaviour-Based Approach To The Estimation Of Poverty In India," Working papers, Centre for Development Economics, Delhi School of Economics 226, Centre for Development Economics, Delhi School of Economics.
- D10 - Microeconomics - - Household Behavior - - - General
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
- F01 - International Economics - - General - - - Global Outlook
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
- Irineu E. Carvalho Filho & Marcos Chamon, 2006. "The Myth of Post-Reform Income Stagnation in Brazil," IMF Working Papers, International Monetary Fund 06/275, International Monetary Fund.
- Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, Elsevier, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711 Elsevier.
- Chul Chung & John Gibson & Bonggeun Kim, 2010. "CPI Mismeasurements and Their Impacts on Economic Management in Korea," Asian Economic Papers, MIT Press, MIT Press, vol. 9(1), pages 1-15, January.
- Erling Røed Larsen, 2007. "Does the CPI Mirror the Cost of Living? Engel's Law Suggests Not in Norway," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 109(1), pages 177-195, 03.
- Susan Olivia & John Gibson, 2013.
"Using Engel curves to measure CPI bias for Indonesia,"
Bulletin of Indonesian Economic Studies, Taylor & Francis Journals,
Taylor & Francis Journals, vol. 49(1), pages 85-101, April.
- Susan Olivia & John Gibson, 2012. "Using Engel Curves to Measure CPI Bias for Indonesia," Monash Econometrics and Business Statistics Working Papers, Monash University, Department of Econometrics and Business Statistics 13/12, Monash University, Department of Econometrics and Business Statistics.
- Susan Olivia & John Gibson, 2012. "Using Engel Curves to Measure CPI Bias for Indonesia," Working Papers in Economics, University of Waikato, Department of Economics 12/06, University of Waikato, Department of Economics.
- Robert T. Jensen & Nolan H. Miller, 2010. "A Revealed Preference Approach to Measuring Hunger and Undernutrition," NBER Working Papers 16555, National Bureau of Economic Research, Inc.
- Beatty, Timothy K.M. & Larsen, Erling Roed, 2004.
"Using Engel Curves To Estimate Bias In The Canadian Cpi As A Cost Of Living Index,"
Working Papers, University of British Columbia, Food and Resource Economics
15836, University of British Columbia, Food and Resource Economics.
- Timothy Beatty & Erling Røed Larsen, 2005. "Using Engel curves to estimate bias in the Canadian CPI as a cost of living index," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 38(2), pages 482-499, May.
- John Gibson & Steven Stillman & Trinh Le, 2004.
"CPI Bias and Real Living Standards in Russia During the Transition,"
Working Papers in Economics, University of Waikato, Department of Economics
04/02, University of Waikato, Department of Economics.
- Gibson, John & Stillman, Steven & Le, Trinh, 2008. "CPI bias and real living standards in Russia during the transition," Journal of Development Economics, Elsevier, Elsevier, vol. 87(1), pages 140-160, August.
- John Gibson & Steven Stillman, 2004. "CPI Bias and Real Living Standards in Russia During The Transition," Econometric Society 2004 North American Summer Meetings, Econometric Society 504, Econometric Society.
- Garry F. Barrett & Matthew Brzozowski, 2010. "Using Engel Curves to Estimate the Bias in the Australian CPI," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 86(272), pages 1-14, 03.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Gong, Cathy Honge & Meng, Xin, 2008. "Regional Price Differences in Urban China 1986-2001: Estimation and Implication," IZA Discussion Papers 3621, Institute for the Study of Labor (IZA).
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 312-26, June.
- Dora L. Costa, 2001. "Estimating Real Income in the United States from 1888 to 1994: Correcting CPI Bias Using Engel Curves," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 109(6), pages 1288-1310, December.
- Bruce W. Hamilton, 2001. "Using Engel's Law to Estimate CPI Bias," American Economic Review, American Economic Association, American Economic Association, vol. 91(3), pages 619-630, June.
- Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521296762.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julio Saavedra).
If references are entirely missing, you can add them using this form.