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Relative or Absolute Poverty Lines: A New Approach

Author

Listed:
  • Madden, D.

Abstract

When measuring poverty over time analysts must choose the value of the income elacticity of the poverty line. The choice of this paremeter is ultimately a value judgement but this paper suggests an approach which has some empirical basis. Borrowing from the life-style and deprivation approach to poverty various dimensions of poverty and deprivation are identified and the income elasticity of these items is used as the income elasticity of the poverty line.

Suggested Citation

  • Madden, D., 1999. "Relative or Absolute Poverty Lines: A New Approach," Papers 99/9, College Dublin, Department of Political Economy-.
  • Handle: RePEc:fth:dublec:99/9
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    References listed on IDEAS

    as
    1. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
    2. Deaton, Angus & Irish, Margaret, 1984. "Statistical models for zero expenditures in household budgets," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 59-80.
    3. Desai, Meghnad & Shah, Anup, 1988. "An Econometric Approach to the Measurement of Poverty," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 505-522, September.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    5. Callan, Tim & Nolan, Brian & Walsh, John R., 1998. "Income Tax and Social Welfare Policies," Papers BP1999/2, Economic and Social Research Institute (ESRI).
    6. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    7. repec:esr:chaptr:jacb199808 is not listed on IDEAS
    8. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    9. Kay, J. A. & Keen, M. J. & Morris, C. N., 1984. "Estimating consumption from expenditure data," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 169-181.
    10. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    11. Richard Blundell & Ian Preston, 1998. "Consumption Inequality and Income Uncertainty," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 603-640.
    12. Blundell, Richard & Meghir, Costas, 1987. "Bivariate alternatives to the Tobit model," Journal of Econometrics, Elsevier, vol. 34(1-2), pages 179-200.
    13. Donal O'Neill & Olive Sweetman, 1999. "Poverty and Inequality in Ireland: A Comparison using Measures of Income and Consumption," Economics, Finance and Accounting Department Working Paper Series n860399, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
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    More about this item

    Keywords

    SOCIAL WELFARE ; POVERTY;

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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