Reference Groups and the Poverty Line: An Axiomatic Approach with an Empirical Illustration

Chakravarty, Satya R.; Chattopadhyay, Nachiketa; Nissanov, Zoya; Silber, Jacques

doi:10.1108/s1049-258520160000024002

Cited by 5 publications

(13 citation statements)

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“…In a recent paper, Chakravarty et al (2015) developed an axiomatic approach to the determination of what they called "an amalgam poverty line". Given a reference income, say, the mean or the median, this "amalgam poverty line" is derived as a weighted average of the existing absolute poverty line and the reference income, the choice of the weight being guided by the policy maker's preferences for aggregating the two components.…”

Section: Making the Poverty Line Dependent On Reference Groups: An Axmentioning

confidence: 99%

“…The individual utility is assumed to be an increasing concave function of the absolute poverty line but a decreasing convex function of the reference standard. Following Clark and Oswald (1996), Chakravarty et al (2015) considered both an additive and a multiplicative form of the utility function, using two different sets of intuitively reasonable axioms.…”

Section: Making the Poverty Line Dependent On Reference Groups: An Axmentioning

confidence: 99%

“…The novelty of the present paper is that it offers an empirical illustration of the proposal of Chakravarty et al (2015). Using data on the shares in total expenditures of the deciles of the distribution of expenditures in different Asian countries around 2010, it indicates what the headcount ratio, the number of poor and the poverty gap ratio would be under various scenarios.…”

Section: Introductionmentioning

confidence: 99%

“…Section 2 shortly summarizes the main elements of the paper by Chakravarty et al (2015). Section 3 reviews briefly the role played by reference groups in the growing economic literature on happiness.…”

Section: Introductionmentioning

confidence: 99%

“…This is why Ravallion and Chen (2011), generalizing somehow the measures proposed by Atkinson and Bourguignon (2001), suggested that there should be a positive lower bound to the costs of social inclusion so that the poverty line would rise with the mean income only above some critical value and it then would do so with an elasticity less than one. A different but still combined approach to the selection of a poverty line was proposed recently by Chakravarty et al (2015) who developed axiomatically what they called "an amalgam poverty line". The Atkinson-Bourguignon (2001) and EU (see, Lelkes and Gasior, 2011) standard suggestions for basing the poverty lines on some location parameter are particular cases of this formulation.…”

Section: Introductionmentioning

confidence: 99%

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A Poverty Line Contingent on Reference Groups: Implications for the Extent of Poverty in Some Asian Countries

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. Satya R. Chakravarty is a professor at the Indian Statistical Institute, Nachiketa Chattopadhyay is an associate professor at the Indian Statistical Institute, and Jacques Silber is professor emeritus at Bar-Ilan University in Israel.The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published. AbstractThis paper estimates the number of poor in various countries in Asia by applying an "amalgam poverty line", which is a weighted average of an absolute poverty line (such as $1.25 per day or $1.45 per day) and a reference income (such as the mean or the median income). The number of poor is computed under various values of the weight applied to the absolute poverty line, namely 100%, 90%, 66%, and 50%. The paper provides estimates of the headcount ratio and poverty gap ratio under the various scenarios for 25 different countries or regions examined.

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Section: Making the Poverty Line Dependent On Reference Groups: An Axmentioning

confidence: 99%

Section: Making the Poverty Line Dependent On Reference Groups: An Axmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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A Poverty Line Contingent on Reference Groups: Implications for the Extent of Poverty in Some Asian Countries

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A Synthesis of Multidimensional Poverty

2017

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On Measuring Global Poverty

Ravallion

2020

Annu. Rev. Econ.

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This article critically assesses prevailing measures of global poverty. A welfarist interpretation of global poverty lines is augmented by the idea of normative functionings, the cost of which varies across countries. In this light, current absolute measures are seen to ignore important social effects on welfare, while popular, strongly relative measures ignore absolute levels of living. It is argued that a new hybrid measure is called for, combining absolute and weakly relative measures consistent with how national lines vary across countries. Illustrative calculations indicate that we are seeing a falling incidence of poverty globally over the past 30 years. This is mainly due to lower absolute poverty counts in the developing world. While fewer people are poor by the global absolute standard, more are poor by the country-specific relative standard. The vast bulk of poverty, both absolute and relative, is now found in the developing world. Expected final online publication date for the Annual Review of Economics, Volume 12 is August 3, 2020. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

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Reference Groups and the Poverty Line: An Axiomatic Approach with an Empirical Illustration

Cited by 5 publications

References 32 publications

A Poverty Line Contingent on Reference Groups: Implications for the Extent of Poverty in Some Asian Countries

A Poverty Line Contingent on Reference Groups: Implications for the Extent of Poverty in Some Asian Countries

A Synthesis of Multidimensional Poverty

On Measuring Global Poverty

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