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Estimating utility-consistent poverty lines

Channing Arndt () and Kenneth Simler

No 189, FCND discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: "The “Cost of Basic Needs” (CBN) approach to drawing consumption-based poverty lines is widely applied and lays credible claim to being the best practice for estimating poverty measures. Unfortunately, a growing mass of evidence indicates that poverty estimates obtained under the CBN approach are often demonstrably utility inconsistent. Here, we introduce an information theoretic approach for estimating utility-consistent poverty lines. An example of the approach is provided for the case of Mozambique. The approach represents a powerful addition to the poverty analyst's tool kit and enhances the attractiveness of the CBN approach for practical poverty measurement problems." Authors' Abstract

Keywords: Poverty lines; Poverty alleviation; Development projects Evaluation; measurement; Entropy estimation (search for similar items in EconPapers)
Date: 2005
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