Defining Poverty Lines As A Fraction Of Central Tendency
We show under lognormality that, when the Gini coefficient is stable over time, defining the poverty line as a fraction of a central tendency of the living standard distribution restricts the evolution of the poverty measures to be stable. That is, poverty does not change if the Gini coefficient does not change. Moreover, when the Gini coefficient slightly changes, most of the poverty change can be considered a change in inequality. Then, the consequences of using different poverty lines are analysed. Thus, important features in studies of poverty change based on these lines may result from methodological choices rather than from economic mechanisms.
|Date of creation:||Mar 2005|
|Date of revision:|
|Publication status:||Published by Ivie|
|Contact details of provider:|| Postal: |
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Web page: http://www.ivie.es/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David (David Patrick) Madden, 1999.
"Relative or absolute poverty lines : a new approach,"
199909, School of Economics, University College Dublin.
- Madden, David, 2000. "Relative or Absolute Poverty Lines: A New Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 181-99, June.
- Madden, D., 1999. "Relative or Absolute Poverty Lines: A New Approach," Papers 99/9, College Dublin, Department of Political Economy-.
- Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
- Hagenaars, Aldi J M & van Praag, Bernard M S, 1985. "A Synthesis of Poverty Line Definitions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 139-54, June.
- Mercedes Prieto Alaiz & Maria-Pia Victoria-Feser, 1996. "Modelling Income Distribution in Spain: A Robust Parametric Approach," STICERD - Distributional Analysis Research Programme Papers 20, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Sen, Amartya, 1983. "Poor, Relatively Speaking," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 153-69, July.
- McDonald, James B & Ransom, Michael R, 1979. "Functional Forms, Estimation Techniques and the Distribution of Income," Econometrica, Econometric Society, vol. 47(6), pages 1513-25, November.
- Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
- Callan, Tim & Nolan, Brian, 1991.
" Concepts of Poverty and the Poverty Line,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 5(3), pages 243-61.
- Zheng, Buhong, 2001. "Statistical inference for poverty measures with relative poverty lines," Journal of Econometrics, Elsevier, vol. 101(2), pages 337-356, April.
- van Praag, Bernard M S & Hagenaars, Aldi J M & van Eck, Wim, 1983. "The Influence of Classification and Observation Errors on the Measurement of Income Inequality," Econometrica, Econometric Society, vol. 51(4), pages 1093-108, July.
- van Praag, Bernard & Goedhart, Theo & Kapteyn, Arie, 1980. "The Poverty Line-A Pilot Survey in Europe," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 461-65, August.
- Musgrave, R.A., 1985. "A brief history of fiscal doctrine," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 1, pages 1-59 Elsevier.
- Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February.
- James E. Foster & Efe A. Ok, 1999.
"Lorenz Dominance and the Variance of Logarithms,"
Econometric Society, vol. 67(4), pages 901-908, July.
- Christophe Muller, 2001. "The Properties of the Watts Poverty Index under Lognormality," Economics Bulletin, AccessEcon, vol. 9(1), pages 1-9.
- Pradhan, Menno & Ravallion, Martin, 1998. "Measuring poverty using qualitative perceptions of welfare," Policy Research Working Paper Series 2011, The World Bank.
- Ravallion, M. & Datt, G., 1991. "Growth and Redistribution Components of Changes in Poverty Measures," Papers 83, World Bank - Living Standards Measurement.
- Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-41, May.
When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2005-13. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición)
If references are entirely missing, you can add them using this form.