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An examination of methods to estimate poverty line in Indonesia

Author

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  • Muhammad Nashihin

    (STIE Keuangan dan Perbankan Indonesia (STEKPI), Jakarta)

Abstract

The first objective of this paper is to set out a new approach for estimating regional poverty lines in Indonesia. The approach is referred as a utility-consistent poverty line (UCPL) approach. It is based on a theory of price index or cost of living index (COLI). The second objective is to examine the development of methods for estimating poverty lines in general and methods used to estimate regional poverty lines in Indonesia. The survey focuses on comparing these methods with UCPL approach. The paper finds out that the existing methods used to estimate poverty line in Indonesia are not able to generate utility-consistent poverty lines.

Suggested Citation

  • Muhammad Nashihin, 2009. "An examination of methods to estimate poverty line in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 1(3), pages 161-175, April.
    • Handle: RePEc:uii:journl:v:1:y:2009:i:3:p:161-175
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    References listed on IDEAS

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    More about this item

    Keywords

    Poverty line; spatial cost of living; food energy intake; ravallion method;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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