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Inference for the Measurement of Poverty in the Presence of a Stochastic Weighting Variable

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  • Bram Thuysbaert

Abstract

Empirical applications of poverty measurement often have to deal with a stochastic weighting variable such as household size. Within the framework of a bivariate distribution function defined over income and weight, I derive the limiting distributions of the decomposable curves. The poverty line is allowed to depend on the income distribution. It is shown how the results can be used to test hypotheses concerning changes in poverty. The inference procedures are briefly illustrated using Belgian data.

Suggested Citation

  • Bram Thuysbaert, 2005. "Inference for the Measurement of Poverty in the Presence of a Stochastic Weighting Variable," Working Papers of Department of Economics, Leuven ces0502, KU Leuven, Faculty of Economics and Business (FEB), Department of Economics, Leuven.
    • Handle: RePEc:ete:ceswps:ces0502
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