A New Model for Constructing Poverty Lines

Nanak Kakwani
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Nanak Kakwani: Philippine Institute for Development Studies

Development Economics Working Papers from East Asian Bureau of Economic Research

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.

Keywords: Poverty line; Consumer theory; Consistent poverty Line; Calorie cost; economies of scale and poverty measures (search for similar items in EconPapers)
JEL-codes: D11 O10 (search for similar items in EconPapers)
Date: 2010-01
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Citations: View citations in EconPapers (7)

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