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Impacts of Policies on Poverty. Relative Poverty Lines

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  • Bellù, Lorenzo Giovanni
  • Liberati, Paolo

Abstract

This module illustrates how to define “relative” poverty lines, i.e. poverty lines based on approaches that consider the welfare position of each individual or household in relation to the welfare position of other individuals or households belonging to the same community. In particular, the module, after emphasizing the importance of the relative poverty concept in policy work, discusses two methods to define relative poverty lines: a) the “income levels” method; and b) the “income positions” method. It also shows in what these methods differ, and how they can be made operational, by means of step-by-step procedures and examples. In policy work, relativist concepts of poverty are widely used.

Suggested Citation

  • Bellù, Lorenzo Giovanni & Liberati, Paolo, 2005. "Impacts of Policies on Poverty. Relative Poverty Lines," MPRA Paper 44665, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44665
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    File URL: https://mpra.ub.uni-muenchen.de/44665/1/MPRA_paper_44665.pdf
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    More about this item

    Keywords

    policy impact analysis welfare indicator household income household expenditure relative poverty concept policy analysis poverty lines inequality analysis;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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