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Measuring Poverty Changes with Bounded Equivalence Scales: Australia in the 1980s

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  • Bradbury, Bruce

Abstract

When measuring poverty, an equivalence scale is used to take account of the different income needs of different family types. However, there is little consensus about the choice of scale. A method is presented here that permits general statements about changes in poverty to be made which will be true for a range of equivalence scales. The method is used to describe changes in poverty in Australia between 1981-82 and 1989-90. Different scales lead to estimates of the increase in the head count poverty rate between 1981-82 and 1989-90 of between +1.7 and -0.6 percentage points (at commonly chosen poverty thresholds). Copyright 1997 by The London School of Economics and Political Science

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  • Bradbury, Bruce, 1997. "Measuring Poverty Changes with Bounded Equivalence Scales: Australia in the 1980s," Economica, London School of Economics and Political Science, vol. 64(254), pages 245-264, May.
  • Handle: RePEc:bla:econom:v:64:y:1997:i:254:p:245-64
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    Cited by:

    1. Jean-Yves Duclos & Paul Makdissi, 2005. "Sequential Stochastic Dominance And The Robustness Of Poverty Orderings," Review of Income and Wealth, International Association for Research in Income and Wealth, pages 63-87.
    2. Fleurbaey, Marc & Hagnere, Cyrille & Trannoy, Alain, 2003. "Welfare comparisons with bounded equivalence scales," Journal of Economic Theory, Elsevier, pages 309-336.
    3. Hernando-Veciana, Ángel & Tröge, Michael, 2011. "The insider's curse," Games and Economic Behavior, Elsevier, vol. 71(2), pages 339-350, March.
    4. Georges Dionne & Christian Gourieroux & Charles Vanasse, 1998. "Evidence of Adverse Selection in Automobile Insurance Markets," Working Papers 98-24, Center for Research in Economics and Statistics.
    5. Stefan Dercon, 2001. "Poverty Orderings when Welfare Comparisons are Uncertain," Economics Series Working Papers 79, University of Oxford, Department of Economics.
    6. Muller, Christophe, 2005. "Price index dispersion and utilitarian social evaluation," Economics Letters, Elsevier, pages 141-146.
    7. Fleurbaey, Marc & Hagneré, Cyrille & Trannoy, Alain, 2014. "Welfare comparisons of income distributions and family size: An individualistic approach," Journal of Mathematical Economics, Elsevier, pages 12-27.
    8. Fleurbaey, Marc & Hagnere, Cyrille & Trannoy, Alain, 2003. "Welfare comparisons with bounded equivalence scales," Journal of Economic Theory, Elsevier, pages 309-336.

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