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An Alternative of Poverty Line Measurement: a Case Study of Indonesia

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  • Widodo, Tri

Abstract

This paper discusses poverty lines in Indonesia. Firstly, the various poverty lines in Indonesia is discussed. The differences in methodologies and assumptions had created the central controversies in determining the poverty lines: kinds and quantities of goods. Secondly, an alternative poverty line measurement is the theoretically derived under Linear Expenditure System (LES). This poverty line might overcome the controversies. Thirdly, the poverty line measurement is then applied in case of Indonesia. This paper consludes that the economic crisis in 1997 had led to the increase of poverty lines in urban areas higher than in rural area.

Suggested Citation

  • Widodo, Tri, 2001. "An Alternative of Poverty Line Measurement: a Case Study of Indonesia," MPRA Paper 78323, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78323
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    References listed on IDEAS

    as
    1. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    2. Menno Pradhan & Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, "undated". "Measurements of Poverty in Indonesia: 1996, 1999, and Beyond," Working Papers 422, Publications Department.
    3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    4. Ravallion, Martin & Bidani, Benu, 1994. "How Robust Is a Poverty Profile?," The World Bank Economic Review, World Bank, vol. 8(1), pages 75-102, January.
    5. Howard Howe, 1974. "Estimation of the Quadratic Expenditure System: A Cross-Section Case," The American Economist, Sage Publications, vol. 18(2), pages 13-38, October.
    6. Widodo, Tri, 2000. "The Impact of Economic Crisis on Welfare of Rural and Urban Households: a Case Study of Indonesia," MPRA Paper 78114, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty Line; Linear Expenditure System (LES); Seemingly Uncorrelated Regression (SUR).;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D60 - Microeconomics - - Welfare Economics - - - General

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