Negative Net Incomes and the Measurement of Poverty: A Note

Héctor H. Sandoval and Carlos Urzúa
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Héctor H. Sandoval: Consejo Nacional de Evaluación de la Política de Desarrollo Social

Revista de Administración, Finanzas y Economía (Journal of Management, Finance and Economics), 2009, vol. 3, issue 1, 29-36

Abstract: This note warns about the careless computation of poverty indexes when the welfare of each household is measured by its net income, since this can be negative. As is illustrated in the case of Mexico, even if only a handful of households report negative incomes, the resulting poverty aggregates, when they go beyond a mere headcount measure, can behave rather badly. The note ends with suggestions on how to deal with the problem

Keywords: Poverty measures; poverty indexes; negative income; income and expenditure survey; Mexico (search for similar items in EconPapers)
JEL-codes: C81 I32 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Negative Net Incomes and the Measurement of Poverty: A Note (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ega:rafega:200903

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