Measuring Poverty

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


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.


Poverty Line Lorenz Curve Social Welfare Function Relative Deprivation Poverty Index 
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