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Quantity Constraints, Poverty Lines and Poverty Orderings

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  • Ramses H. Abul Naga

Abstract

By limiting the scope for substitution between commodities, other things equal quantity constraints raise the cost of living. Thus, rationed families have higher povery lines than unconstrained ones. This heterogeneity in both resources and poverty lines means that, in principle, bivariate dominance results are required to order distributions in terms of poverty.

Suggested Citation

  • Ramses H. Abul Naga, 2002. "Quantity Constraints, Poverty Lines and Poverty Orderings," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 02.11, Université de Lausanne, Faculté des HEC, DEEP.
  • Handle: RePEc:lau:crdeep:02.11
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    References listed on IDEAS

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    1. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
    2. Atkinson, A B, 1992. "Measuring Poverty and Differences in Family Composition," Economica, London School of Economics and Political Science, vol. 59(233), pages 1-16, February.
    3. Ashenfelter, Orley, 1980. "Unemployment as Disequilibrium in a Model of Aggregate Labor Supply," Econometrica, Econometric Society, vol. 48(3), pages 547-564, April.
    4. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    6. Bishop, John A. & Formby, John P. & Thistle, Paul D., 1991. "Rank dominance and international comparisons of income distributions," European Economic Review, Elsevier, vol. 35(7), pages 1399-1409, October.
    7. Neary, J. P. & Roberts, K. W. S., 1980. "The theory of household behaviour under rationing," European Economic Review, Elsevier, vol. 13(1), pages 25-42, January.
    8. Samuelson, Paul A, 1972. "Maximum Principles in Analytical Economics," American Economic Review, American Economic Association, vol. 62(3), pages 249-262, June.
    9. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, April.
    10. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Oxford University Press, vol. 49(2), pages 183-201.
    11. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-177, January.
    12. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    13. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-526, June.
    14. Deaton, Angus & Meullbauer, John, 1981. "Functional Forms for Labor Supply and Commodity Demands with and without Quantity Restrictions," Econometrica, Econometric Society, vol. 49(6), pages 1521-1532, November.
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    Cited by:

    1. Manouchehr Mokhtari & Nader Asgary, 2009. "Effects of Consumer Goods Shortages on Fertility in Post-Soviet Economy," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 160-170, June.

    More about this item

    Keywords

    poverty lines; rationing; poverty orderings; bivariate stochastic dominance;

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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