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Measuring Poverty

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Poverty and Equity

Part of the book series: Economic Studies in Inequality, Social Exclusion and Well-Being ((EIAP,volume 2))

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Abstract

Two approaches have been used to devise cardinal indices of poverty. The first uses the concept of equally distributed equivalent ( EDE) incomes, and applies it to distributions whose incomes have been censored at the poverty line. It then compares those EDE incomes to the poverty line. The second approach transforms incomes and the poverty line into poverty gaps, and aggregates these gaps using social-welfare like functions, We look at these two approaches in turn.

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(2006). Measuring Poverty. In: Poverty and Equity. Economic Studies in Inequality, Social Exclusion and Well-Being, vol 2. Springer, Boston, MA. https://doi.org/10.1007/0-387-33318-5_5

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