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

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Author Info
Sanjay G. Reddy () (Dept. of Economics, Barnard College, Columbia University)
Sujata Visaria () (Dept. of Economics, Boston University)
Muhammad Asali () (Dept. of Economics, Columbia University)

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Abstract

We 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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File URL: http://www.ipc-undp.org/pub/IPCWorkingPaper27.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by International Policy Centre for Inclusive Growth in its series Working Papers with number 27.

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Length: 28
Date of creation: Aug 2006
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Publication status: Published by UNDP - International Poverty Centre, August 2006, pages 1-28
Handle: RePEc:ipc:wpaper:27

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Related research
Keywords: Poverty; Inter-Country comparisons; Capability approach;

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Find related papers by JEL classification:
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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This page was last updated on 2009-12-2.

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