2020
DOI: 10.3390/su12219081
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Estimation of Equivalence Scale and Assessment of Its Impact on Poverty Measurement in Bangladesh

Abstract: Anti-poverty policies for sustainable development require efficient targeting, for which appropriate poverty lines play a crucial role. In Bangladesh, official poverty lines are estimated with the implicit assumption that there are no economies of scale in household consumption with respect to household size or composition, which raises the question of the accuracy and reliability of the measurement of poverty line. We test the existence of economies of scale, estimate their size, and assess the impact of appl… Show more

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Cited by 3 publications
(3 citation statements)
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“…These findings will be valuable for the policy makers and development specialists in designing the effective and efficient poverty alleviation programs. Rahman (2020) showed that the poverty measurement that do not consider economies of scale at the households level overestimated for large households. Such over-estimation can lead to biased poverty measurement and therefore, allocating resources in the wrong direction and resulting in failure to achieve the objectives of poverty alleviation policies.…”
Section: Discussionmentioning
confidence: 99%
“…These findings will be valuable for the policy makers and development specialists in designing the effective and efficient poverty alleviation programs. Rahman (2020) showed that the poverty measurement that do not consider economies of scale at the households level overestimated for large households. Such over-estimation can lead to biased poverty measurement and therefore, allocating resources in the wrong direction and resulting in failure to achieve the objectives of poverty alleviation policies.…”
Section: Discussionmentioning
confidence: 99%
“…In line with conventions in financial protection literature and to maintain international comparability, we utilised the World Health Organization’s (WHO) household equivalence scale in our computations [ 47 ]. We also conducted a parallel analysis using a Bangladesh-specific equivalence scale to ensure a context-specific assessment [ 48 ]. To calculate essential food spending, we excluded tobacco-related consumption and dining out [ 49 ].…”
Section: Methodsmentioning
confidence: 99%
“…In this study, data were obtained on actual consumption expenditure of all food and non-food items taken together for the family as whole. The same technique was used by Sarkar [8], Jain [3], Shiyani and Singh [4], Upadhyay [9], Marviya [10], Dutta et al [11], Rahman et al [12] and Chaudhary et al [13] for estimating the consumer adult equivalent scale for different commodities. The standardization of consumer unit was done by using regression technique without/zero intercept.…”
Section: Estimation Of Adult Equivalent Scalementioning
confidence: 99%