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Using the median and the mean of the income to establish the poverty lines

Listed author(s):
  • Maria Livia Stefanescu

    ()

  • Stefan Stefanescu

    (Research Institute for Quality of Life, Romanian Academy)

One of the methods to estimate the poverty level inside a given population is based on how to define the poverty line values. Each person having his income under the poverty threshold will be considered to be poor. In the literature we distinguish at least three approaches: to evaluate the absolute poverty line, to find a relative poverty threshold depending on the main indicators of the income distribution in the analyzed community or to assume a subjective point of view. The procedures for determining the relative poverty lines are based in practice on the mean or the median of the population income. To assure a concordance between the concrete estimation of several possible poverty thresholds and the poverty and inequality real phenomena we proposed to be verified three conditions. Finally, we also proved by examples that each of these restrictions are not obligatory satisfied by an arbitrary real positive data set. The present study will be extended in the future to assure a theoretical support for estimating more exactly the relative poverty lines.

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File URL: http://cmss.univnt.ro/wp-content/uploads/vol/split/vol_II_issue_1/CMSS_vol_II_issue_1_art.002.pdf
File Function: First version, 2014
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Article provided by "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences in its journal Computational Methods in Social Sciences (CMSS).

Volume (Year): 2 (2014)
Issue (Month): 1 (June)
Pages: 21-27

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Handle: RePEc:ntu:ntcmss:vol2-iss1-14-021
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  1. Wagstaff, Adam & Paci, Pierella & van Doorslaer, Eddy, 1991. "On the measurement of inequalities in health," Social Science & Medicine, Elsevier, vol. 33(5), pages 545-557, January.
  2. ERREYGERS, Guido, 2006. "Beyond the Health Concentration Index: An Atkinson alternative for the measurement of the socioeconomic inequality of health," Working Papers 2006029, University of Antwerp, Faculty of Applied Economics.
  3. Caterina Ruggeri Laderchi & Ruhi Saith & Frances Stewart, 2003. "Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 243-274.
  4. Wagstaff, Adam & van Doorslaer, Eddy & Paci, Pierella, 1989. "Equity in the Finance and Delivery of Health Care: Some Tentative Cross-country Comparisons," Oxford Review of Economic Policy, Oxford University Press, vol. 5(1), pages 89-112, Spring.
  5. Wagstaff, Adam, 2002. "Inequality aversion, health inequalities and health achievement," Journal of Health Economics, Elsevier, vol. 21(4), pages 627-641, July.
  6. Paul Makdissi & Myra Yazbeck, 2012. "Avoiding Blinding to Health Status: A New Class of Health Achievement and Inequality Indices," Working Papers 1207E, University of Ottawa, Department of Economics.
  7. Kuan Xu, 2003. "How Has the Literature on Gini's Index Evolved in the Past 80 Years?," Department of Economics at Dalhousie University working papers archive howgini, Dalhousie, Department of Economics.
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