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A New Model for Constructing Poverty Lines

  • Nanak Kakwani

    (Philippine Institute for Development Studies)

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    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.

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    Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 23096.

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    Date of creation: Jan 2010
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    Handle: RePEc:eab:develo:23096
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    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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