Inter-country Comparisons of Poverty Based on a Capability Approach: An Empirical Exercise
AbstractWe argue that inter-country comparisons of income poverty based on poverty lines uniformly reflecting 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 assessment 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 comparisons can be advanced through international co-ordination in survey design and in the construction of income poverty lines that uniformly reflect the costs of the basic requirements of human beings.
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Bibliographic InfoPaper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 27.
Date of creation: Aug 2006
Date of revision:
Publication status: Published by UNDP - International Poverty Centre, August 2006, pages 1-28
Poverty; Inter-Country comparisons; Capability approach;
Other versions of this item:
- Sanjay Reddy & Sujata Visaria & Muhammad Asali, 2006. "Inter-country Comparisons of Poverty Based on Capability Approach: An Empirical Exercise," Boston University - Department of Economics - Working Papers Series WP2006-038, Boston University - Department of Economics.
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-08 (All new papers)
- NEP-DEV-2007-08-08 (Development)
- NEP-HAP-2007-08-08 (Economics of Happiness)
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- 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.
- Alkire, Sabina, 2008. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," MPRA Paper 8862, University Library of Munich, Germany.
- Daniel Gottlieb & Alexander Fruman, 2011. "A quality-index of poverty measures," Working Papers 239, ECINEQ, Society for the Study of Economic Inequality.
- 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.
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