The Poverty Burden: A Measure of the Difficulty of Ending Extreme Poverty
AbstractIn this paper, we consider an extension of the commonly used poverty gap measure that may be used to address he question of whether the elimination of poverty is a feasible objective, given sufficient political commitment. The resources potentially available to address poverty may be measured by the total amount by which the incomes of the non-poor exceed the same poverty line. The ratio of the poverty gap to the resources potentially available is equal to the proportional tax rate on incomes in excess of the poverty line that would be required to fund a transfer sufficient to raise the incomes of all poor people to the poverty line. We refer to this ratio as the ‘poverty burden’ (PB). We provide a formal definition of the poverty burden and an analysis of its properties as a poverty measure.
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Bibliographic InfoPaper provided by Risk and Sustainable Management Group, University of Queensland in its series Australian Public Policy Program Working Papers with number WPP10_2.
Date of creation: Dec 2010
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Index numbers; Poverty; Aid;
Other versions of this item:
- Quiggin, John & Mahadevan, Renuka, 2010. "The Poverty Burden: A Measure of the Difficulty of Ending Extreme Poverty," Risk and Sustainable Management Group Working Papers 151524, University of Queensland, School of Economics.
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- F35 - International Economics - - International Finance - - - Foreign Aid
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-09 (All new papers)
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