Some confidence intervals and insights for the proportion below the relative poverty line

Dilanka S. Dedduwakumara, Luke A. Prendergast () and Robert G. Staudte
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Dilanka S. Dedduwakumara: La Trobe University
Luke A. Prendergast: La Trobe University
Robert G. Staudte: La Trobe University

SN Business & Economics, 2021, vol. 1, issue 10, 1-22

Abstract: Abstract We examine a commonly used relative poverty measure called the headcount ratio ( $$H_{p}$$ H p ), defined to be the proportion of incomes falling below the relative poverty line, which is defined to be a fraction p of the median income. We do this by considering this concept for theoretical income populations, and its potential for determining actual changes following transfer of incomes from the wealthy to those whose incomes fall below the relative poverty line. In the process we derive and evaluate the performance of large sample confidence intervals for $$H_{p}$$ H p . Finally, we illustrate the estimators on real income data sets.

Keywords: Confidence intervals; Headcount ratio; Poverty; Quantile ratio index (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s43546-021-00151-9

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