How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study
AbstractThis study asks whether, in a rapidly changing world, the estimated proportion of the world's population with income below US$1 (adjusted according to purchasing power parity) per day is still a good measure of trends in poverty. It argues that strong economic growth in nations such as China implies that the commonly accepted international poverty line definition of one half median national equivalent income is increasingly relevant and that poverty intensity (the normalized deficit or Foster-Greer-Thorbecke (FGT) index of order one) is a better summary index. This index has a convenient graphical representation-the "poverty box". Using the proposed poverty line and the example of ranking the level of rural poverty in Chinese provinces, the study demonstrates how poverty intensity replicates the poverty rankings of the Sen family of poverty indices and captures most of the information content of higher-order FGT indices. Copyright ï¿½ 2008 The Authors.
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Bibliographic InfoPaper provided by Dalhousie, Department of Economics in its series Department of Economics at Dalhousie University working papers archive with number rderevision9.
Length: 47 pages
Date of creation: 23 Feb 2007
Date of revision:
development; poverty; measurement; China; growth;
Other versions of this item:
- Lars Osberg & Kuan Xu, 2008. "How Should We Measure Poverty in a Changing World? Methodological Issues and Chinese Case Study," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 419-441, 05.
- NEP-ALL-2007-03-31 (All new papers)
- NEP-CNA-2007-03-31 (China)
- NEP-DEV-2007-03-31 (Development)
- NEP-SEA-2007-03-31 (South East Asia)
- NEP-TRA-2007-03-31 (Transition Economics)
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