A New Model for Constructing Poverty Lines

Nanak Kakwani

No DP 2010-06, Discussion Papers from 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 nonfood 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.

Keywords: economies of scale; poverty measures; poverty line; consistent poverty line; consumer theory; calorie cost (search for similar items in EconPapers)
Pages: 24
Date: 2010
New Economics Papers: this item is included in nep-dev and nep-ltv
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Citations: View citations in EconPapers (7)

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