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Quantity Constraints, Poverty Lines and Poverty Orderings

Ramses H. Abul Naga

Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) from Université de Lausanne, Faculté des HEC, DEEP

Abstract: By limiting the scope for substitution between commodities, other things equal quantity constraints raise the cost of living. Thus, rationed families have higher povery lines than unconstrained ones. This heterogeneity in both resources and poverty lines means that, in principle, bivariate dominance results are required to order distributions in terms of poverty.

Keywords: poverty lines; rationing; poverty orderings; bivariate stochastic dominance (search for similar items in EconPapers)
JEL-codes: C2 C3 D6 I3 (search for similar items in EconPapers)
Date: 2002-06

Published in Journal of Economic Inequality, vol.2 (1), April 2004, pp. 31-43

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