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Poverty measurement under income and price dispersion

In: Research Handbook on Measuring Poverty and Deprivation

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  • Christophe Muller

Abstract

This chapter discusses facts, methods and empirical results that pertain to poverty measurement under income and price dispersions. The correlation of prices and living standards is examined, and its sources are considered, whether they are related to consumer preferences, economic interactions and market imperfections. Then, the relationship of price dispersion and aggregate social indicators - including poverty measures - is analyzed by combining stochastic hypotheses about prices and incomes with normative properties of social and poverty indicators. Finally, empirical results about how dispersed heterogeneous price indices affect poverty measurement, anti-poverty targeting and poverty-alleviation price reforms are reviewed.

Suggested Citation

  • Christophe Muller, 2023. "Poverty measurement under income and price dispersion," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 14, pages 151-160, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20574_14
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