A New Model for Constructing Poverty Lines

Nanak Kakwani

Working Papers from eSocialSciences

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: poverty lines; nonfood poverty; value judgments; ad hoc assumptions; Pakistan; standard of living; consumer theory; money metric (search for similar items in EconPapers)
Date: 2016-02
Note: Institutional Papers
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