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Strategic And General Equilibrium Models In Poverty Measurement Studies

  • Bhattarai, Keshab

    ()

    (Business School, University of Hull, Cottingham Road, HU6 7RX)

Incentive compatibility in poverty alleviation game for the most efficient and just allocation of resources and maximisation of social welfare requires cooperation from both rich and poor households, governments and the global community. Noncooperation among them only deepens poverty with socially, economically and morally unacceptable magnitudes of malnutrition, hunger-disease-illness, tensions and conflicts, illiteracy and lack of education and skills. Scientific analyses and systematic implementation of poverty reduction initiatives require strategic and multihousehold general equilibrium models to compliment standard Booth-Rowntree, Sen- Atkinson and FGT or Jenkins-Lambert type absolute, relative, chronic or intensity measures of poverty in order to evaluate dynamic impacts actions taken for alleviation of poverty. Bad game results in poverty and good game results in prosperity. No analyses of poverty can be considered complete without evaluating income and substitution effects on welfare of these households based on the price mechanism and allocation of resources in the wider economy.

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Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2010)
Issue (Month): 1 (March)
Pages: 137-150

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Handle: RePEc:rjr:romjef:v::y:2010:i:1:p:137-150
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  1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  3. Slesnick, Daniel T, 1996. "Consumption and Poverty: How Effective Are In-Kind Transfers?," Economic Journal, Royal Economic Society, vol. 106(439), pages 1527-45, November.
  4. Davidson, R. & Duclos, J.-Y., 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," G.R.E.Q.A.M. 98a14, Universite Aix-Marseille III.
  5. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  6. Shorrocks, Anthony F, 1995. "Revisiting the Sen Poverty Index," Econometrica, Econometric Society, vol. 63(5), pages 1225-30, September.
  7. Desai, Meghnad & Shah, Anup, 1988. "An Econometric Approach to the Measurement of Poverty," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 505-22, September.
  8. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-19, September.
  9. Basu, Kaushik, 1985. "Poverty Measurement: A Decomposition of the Normalization Axion [Cardinal Utility, Utilitarianism and a Class of Invariance Axioms in Welfare Analysis] [Poverty: An Ordinal Approach to Measurement]," Econometrica, Econometric Society, vol. 53(6), pages 1439-43, November.
  10. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
  11. Vaughan, R N, 1987. "Welfare Approaches to the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 97(388a), pages 160-70, Supplemen.
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