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Poverty, inequality and redistribution: A methodology to define the rich


  • Marcelo Medeiros

    () (International Poverty Centre)


The paper proposes a simple methodology to estimate an affluence line that depends on the knowledge of the income distribution and the poverty line for a given population. The idea that poverty is morally unacceptable and can be eradicated through redistribution of wealth provides the grounds for the methodology. The line is defined as the value that delimitates the aggregated income required to eradicate poverty by the way of transfers from the rich to the poor. I estimate an affluence line using Brazilian 1999 National Household Survey data and briefly discuss the results.

Suggested Citation

  • Marcelo Medeiros, 2006. "Poverty, inequality and redistribution: A methodology to define the rich," Working Papers 18, International Policy Centre for Inclusive Growth.
  • Handle: RePEc:ipc:wpaper:18

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    References listed on IDEAS

    1. Siegfried, John J & Round, David K, 1994. "How Did the Wealthiest Australians Get So Rich?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(2), pages 191-204, June.
    2. Christopher D. Carroll, 2000. "STATA code for Portfolios of the Rich," QM&RBC Codes 41, Quantitative Macroeconomics & Real Business Cycles.
    3. Austan Goolsbee, 2000. "Taxes, High-Income Executives, and the Perils of Revenue Estimation in the New Economy," American Economic Review, American Economic Association, vol. 90(2), pages 271-275, May.
    4. Karen E. Dynan & Jonathan Skinner & Stephen P. Zeldes, 2004. "Do the Rich Save More?," Journal of Political Economy, University of Chicago Press, vol. 112(2), pages 397-444, April.
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    Cited by:

    1. Julia Johannsen, 2006. "Operational Poverty Targeting In Peru ? Proxy Means Testing With Non-Income Indicators," Working Papers 30, International Policy Centre for Inclusive Growth.
    2. Peichl, Andreas & Schaefer, Thilo & Scheicher, Christoph, 2006. "Measuring Richness and Poverty," FiFo Discussion Papers - Finanzwissenschaftliche Diskussionsbeiträge 06-11, University of Cologne, FiFo Institute for Public Economics.
    3. Eisenhauer, Joseph G., 2011. "The rich, the poor, and the middle class: Thresholds and intensity indices," Research in Economics, Elsevier, vol. 65(4), pages 294-304, December.

    More about this item


    Poverty; Affluence; Rich; Social inequality;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents


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