Relative or Absolute Poverty Lines: A New Approach
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.
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