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Prices and poverty in India

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Author Info
Angus Deaton (Princeton University)
Alessandro Tarozzi (Princeton University)

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Abstract

In India, as in other countries, indexes of consumer prices perform many important functions. Millions of workers have their wages indexed to some measure of the price level. Just as important is the issue that is our main focus here, the estimation of poverty. Indian poverty rates are defined as the fractions of people living in households whose real per capita total expenditure falls below the poverty line. Data on total expenditures are collected by the National Sample Survey (NSS) in money terms so that, for each new round of data, the real poverty line must be converted to current rupees by multiplying by an index of prices. Inaccuracy in the estimation of the index, for example overestimation of the price increase relative to the base, will result in corresponding inaccuracy of the poverty estimates, for example an underestimation in the rate of poverty reduction. At a time when the data show historically high rates of GDP growth without much reduction in poverty, especially rural poverty, it is important to establish the accuracy of the price and poverty calculations.

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Paper provided by Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies. in its series Working Papers with number 213.

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Date of creation: Jul 2000
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Handle: RePEc:pri:rpdevs:213

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  1. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2006. "Poverty in Rural India: Ethnicity and Caste," Departmental Working Papers 200634, Rutgers University, Department of Economics. [Downloadable!]
  2. Alessandro Tarozzi, 2004. "Calculating Comparable Statistics from Incomparable Surveys, with an Application to Poverty in India," Econometric Society 2004 North American Winter Meetings 280, Econometric Society. [Downloadable!]
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  3. Joydeep Roy, 2004. "Redistributing Educational Attainment: Evidence from an Unusual Policy Experiment in India," Development and Comp Systems 0412001, EconWPA. [Downloadable!]
  4. Johannes G. Hoogeveen & Berk Özler, 2005. "Not Separate, Not Equal: Poverty and Inequality in Post-Apartheid South Africa," William Davidson Institute Working Papers Series wp739, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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  5. Elena Glinskaya & Michael Lokshin, 2007. "Wage differentials between the public and private sectors in India," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(3), pages 333-355. [Downloadable!]
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  6. Datt, Gaurav & Ravallion, Martin, 2002. "Is India's economic growth leaving the poor behind?," Policy Research Working Paper Series 2846, The World Bank. [Downloadable!]
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  7. Yoko Kijima & Lanjouw, Peter, 2003. "Poverty in India during the1990s - a regional perspective," Policy Research Working Paper Series 3141, The World Bank. [Downloadable!]
  8. Ashok Parikh & Kunal Sen, 2006. "Probit with heteroscedasticity: an application to Indian poverty analysis," Applied Economics Letters, Taylor and Francis Journals, vol. 13(11), pages 699-707, September. [Downloadable!] (restricted)
  9. Petia Topalova, 2005. "Trade Liberalization, Poverty, and Inequality: Evidence from Indian Districts," NBER Working Papers 11614, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Raghbendra Jha & Raghav Gaiha, 2003. "Determinants of Undernutrition in Rural India," Departmental Working Papers 2003-06, Australian National University, Economics RSPAS. [Downloadable!]
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  11. Loren Brandt & Carsten Holz, 2005. "Spatial Price Differences in China: Estimates and Implications," Microeconomics 0512001, EconWPA. [Downloadable!]
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  12. Raghav Gaiha & Ganesh Thapa & Katsushi Imai & Vani S. Kulkarni, 2007. "Wages, prices and antipoverty interventions in rural India," The School of Economics Discussion Paper Series 0723, Economics, The University of Manchester. [Downloadable!]
  13. Puja Vasudeva Dutta, 2004. "The Structure of Wages in India, 1983-1999," PRUS Working Papers 25, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  14. T. Krishna Kumar & Sushanta Mallick & Jayarama Holla, 2007. "Estimating Consumption Deprivation in India using Survey Data: A State-Level Rural-Urban Analysis before and during Reform Period," Working Papers 7, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research. [Downloadable!]
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  15. Peter Lanjouw, 2007. "Rural Non-Farm Employment in India: Access, Income, farm, Poverty Impact," Working Papers id:913, esocialsciences.com. [Downloadable!]
  16. Ranjan Ray & Amita Majumder & Dipankor Coondoo & Geoffrey Lancaster, 2004. "Derivation of Nutrient Prices from Household level Food Expenditure Data: Methodology and Applications," Econometric Society 2004 Australasian Meetings 170, Econometric Society. [Downloadable!]
  17. Christophe Muller, 2005. "The Measurement Of Poverty With Geographical And Intertemporal Price Dispersion. Evidence From Rwanda," Working Papers. Serie AD 2005-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
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  18. Melanie Morten, 2006. "Indian Poverty during the 1990s: Resolving Methodological Issues from the 55th NSS Round," ASARC Working Papers 2006-07, Australian National University, Australia South Asia Research Centre. [Downloadable!]
  19. Sudip Ranjan Basu & Jaya Krishnakumar & Gabriela Flores, 2004. "Spatial Distribution of Welfare Across States and Different Socio-Economic Groups in Rural and Urban India," Cahiers du Département d'Econométrie 2004.14, Département d'Econométrie, Université de Genève. [Downloadable!]
  20. Gabriela Flores & Jaya Krishnakumar & Sudip Ranjan Basu, 2004. "Demand System Estimations and Welfare Comparisons: Application to Indian Household Data," Cahiers du Département d'Econométrie 2004.13, Département d'Econométrie, Université de Genève. [Downloadable!]
  21. Jan, Dawood & Chisti, Anwar & Eberle, Phillip, 2008. "An Analysis of Major Determinants of Poverty in Agriculture Sector in Pakistan," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6241, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  22. Deepak Lal, 2002. "Economic Reforms & Poverty Alleviation: India A Tale of two Surveys," UCLA Economics Working Papers 822, UCLA Department of Economics. [Downloadable!]
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