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Identifying the Poor: A Comparison of Income and Expenditure Indicators Using the 1985 Family Expenditure Survey

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  • McGregor, Pat
  • Nachane, Dilip

Abstract

The typical approach to classifying an individual as poor is to compare a scalar measure of his welfare with a specified poverty line. Income is the most commonly employed welfare measure, although expenditure is occasionally used. This paper compares the performance of the two indicators using the 1985 Family Expenditure Survey. The criterion used is average distance between those identified as poor by one indicator and the rankings assigned by the alternative indicator. On this basis, expenditure is superior. Copyright 1995 by Blackwell Publishing Ltd

Suggested Citation

  • McGregor, Pat & Nachane, Dilip, 1995. "Identifying the Poor: A Comparison of Income and Expenditure Indicators Using the 1985 Family Expenditure Survey," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 119-128, February.
    • Handle: RePEc:bla:obuest:v:57:y:1995:i:1:p:119-28
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    Cited by:

    1. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.
    2. Nicolai Suppa, 2016. "Comparing Monetary and Multidimensional Poverty in Germany," OPHI Working Papers ophiwp103_1.pdf, Queen Elizabeth House, University of Oxford.
    3. Martina Celidoni, 2015. "Decomposing Vulnerability to Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(1), pages 59-74, March.

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