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A New Model for Constructing Poverty Lines

Author

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  • Nanak Kakwani

    (Philippine Institute for Development Studies)

Abstract

In this paper, we present a new model for constructing poverty lines. The model uses consumer theory to construct both food and non-food poverty thresholds. Although one cannot completely eliminate the value judgments inherent in the construction of poverty thresholds, this model helps to make the ad hoc assumptions that are generally made more justifiable. The model ensures that poverty line is consistent across regions. The methodology developed in the paper is used to illustrate the construction of poverty thresholds in Pakistan.

Suggested Citation

  • Nanak Kakwani, 2010. "A New Model for Constructing Poverty Lines," Development Economics Working Papers 23096, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:develo:23096
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    File URL: http://www.eaber.org/node/23096
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    References listed on IDEAS

    as
    1. 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.
    2. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
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    Cited by:

    1. Marinko Škare & Romina Pržiklas Družeta, 2014. "Constructing Official Poverty Lines for Countries in Transition – Beyond the Poverty Line (2000-2010)," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 368-368, February.
    2. Verónica Amarante & Maira Colacce & Federico Scalese, 2024. "Poverty in Latin America: feelings/perceptions Vs. material conditions," Documentos de Trabajo (working papers) 24-01, Instituto de Economía - IECON.
    3. Nanak Kakwani & Hyun H. Son, 2015. "Measuring food insecurity: Global estimates," Working Papers 370, ECINEQ, Society for the Study of Economic Inequality.
    4. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    5. Brun, Martín & Colacce, Maira, 2019. "Medición de la pobreza monetaria en el Uruguay: conceptos, metodologías, evolución y alternativas," Estudios y Perspectivas – Oficina de la CEPAL en Montevideo 44415, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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    More about this item

    Keywords

    Poverty line; Consumer theory; Consistent poverty Line; Calorie cost; economies of scale and poverty measures;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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