Defining Poverty Lines As A Fraction Of Central Tendency
AbstractWe show under lognormality that, when the Gini coefficient is stable over time, defining the poverty line as a fraction of a central tendency of the living standard distribution restricts the evolution of the poverty measures to be stable. That is, poverty does not change if the Gini coefficient does not change. Moreover, when the Gini coefficient slightly changes, most of the poverty change can be considered a change in inequality. Then, the consequences of using different poverty lines are analysed. Thus, important features in studies of poverty change based on these lines may result from methodological choices rather than from economic mechanisms.
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Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2005-13.
Length: 17 pages
Date of creation: Mar 2005
Date of revision:
Publication status: Published by Ivie
Measurement and Analysis of Poverty; Income Distribution; Personal Income Distribution;
Other versions of this item:
- Christophe Muller, 2006. "Defining Poverty Lines As a Fraction of Central Tendency," Southern Economic Journal, Southern Economic Association, vol. 72(3), pages 720-729, January.
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-05 (All new papers)
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