Absolute Poverty: When Necessity Displaces Desire

S-Tier
Journal: American Economic Review
Year: 2017
Volume: 107
Issue: 12
Pages: 3690-3721

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A new basis for an international poverty measurement is proposed based on linear programming for specifying the least cost diet and explicit budgeting for nonfood spending. This approach is superior to the World Bank's $1-a-day line because it is (i) clearly related to survival and well being; (ii) comparable across time and space since the same nutritional requirements are used everywhere while nonfood spending is tailored to climate; (iii) adjusts consumption patterns to local prices; (iv) presents no index number problems since solutions are always in local prices; and (v) requires only readily available information. The new approach implies much more poverty than the World Bank's, especially in Asia.

Technical Details

RePEc Handle
repec:aea:aecrev:v:107:y:2017:i:12:p:3690-3721
Journal Field
General
Author Count
1
Added to Database
2026-01-24