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Estimating Utility‐Consistent Poverty Lines with Applications to Egypt and Mozambique
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Estimating Utility‐Consistent Poverty Lines with Applications to Egypt and Mozambique
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Journal Article
Estimating Utility‐Consistent Poverty Lines with Applications to Egypt and Mozambique
2010
Overview
A fundamental premise of absolute poverty lines is that they represent the same level of utility through time and space. Disturbingly, a series of recent studies in middle- and low-income economies show that even carefully derived poverty lines rarely satisfy this premise. This article proposes an information-theoretic approach to estimating cost-of-basic-needs (CBN) poverty lines that are utility consistent. Applications to date illustrate that utility-consistent poverty measurements derived from the proposed approach and those derived from current CBN best practices often differ substantially, with the current approach tending to systematically overestimate (underestimate) poverty in urban (rural) zones.
Publisher
The University of Chicago Press,Univ. of Chicago Press,University of Chicago, acting through its Press
Subject
/ Armut
/ Economic Development: Human Resources
/ Economic Development: Regional, Urban, and Rural Analyses
/ Egypt
/ Entropie
/ Entropy
/ Measurement and Analysis of Poverty I320
/ Messung
/ Mosambik
/ Neighborhood Characteristics R230
/ Nutzen
/ Poverty
/ Reforms
/ Scalars
/ Studies
/ Urban, Rural, and Regional Economics: Regional Migration
/ Ägypten
