Income Distribution and Consumption Deprivation: An Analytical Link

Sushanta Mallick ()

Journal of Income Distribution, 2008, vol. 17, issue 2, 25-36

Abstract: This article conceives poverty in terms of the consumption of essential food, makes use of a new deprivation (or poverty) function, and examines the effects of changes in the mean and the variance of the income distribution on poverty, assuming a log-normal income distribution. The presence of a saturation level of consumption can be treated as a poverty-line threshold as opposed to an exogenous income-based poverty line. Within such a consumption deprivation approach, the article proves analytically that rising mean income reduces poverty while rising variance of income distribution increases poverty.

Keywords: inequality; income distribution; consumption deprivation (search for similar items in EconPapers)
JEL-codes: D63 I32 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (5)

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