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A New Model for Constructing Poverty Lines

Author

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  • Nanak Kakwani

    (Philippine Institute for Development Studies)

Abstract

In this paper, we present a new model for constructing poverty lines. The model uses consumer theory to construct both food and non-food poverty thresholds. Although one cannot completely eliminate the value judgments inherent in the construction of poverty thresholds, this model helps to make the ad hoc assumptions that are generally made more justifiable. The model ensures that poverty line is consistent across regions. The methodology developed in the paper is used to illustrate the construction of poverty thresholds in Pakistan.

Suggested Citation

  • Nanak Kakwani, 2010. "A New Model for Constructing Poverty Lines," Development Economics Working Papers 23096, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:develo:23096
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    File URL: http://www.eaber.org/node/23096
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    References listed on IDEAS

    as
    1. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101.
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    More about this item

    Keywords

    Poverty line; Consumer theory; Consistent poverty Line; Calorie cost; economies of scale and poverty measures;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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