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A New Model for Constructing Poverty Lines

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  • Kakwani, Nanak

Abstract

This paper presents a new model for constructing poverty lines. The model uses consumer theory to construct both food and nonfood poverty thresholds. Although one cannot completely eliminate the value judgments inherent in the construction of poverty thresholds, this model helps to make the ad hoc assumptions that are generally made more justifiable. The model ensures that poverty line is consistent across regions. The methodology developed in the paper is used to illustrate the construction of poverty thresholds in Pakistan.

Suggested Citation

  • Kakwani, Nanak, 2013. "A New Model for Constructing Poverty Lines," Philippine Journal of Development PJD 2010 Vol. 37 No. 2c, Philippine Institute for Development Studies.
  • Handle: RePEc:phd:pjdevt:pjd_2010_vol__37_no__2c
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    References listed on IDEAS

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    1. Lanjouw, Peter & Ravallion, Martin, 1995. "Poverty and Household Size," Economic Journal, Royal Economic Society, vol. 105(433), pages 1415-1434, November.
    2. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
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