Change Point Problem Relating to the Poverty Structure

Summary

An index of poverty reflects the extent to which individuals in a society or community fall below a minimal acceptable standard of living. It is generally framed in terms of a set poverty line, the income distribution of the poor, and other social welfare functions relevant to the poverty structure; the Gini coefficient plays a vital role in this context. The income distribution and other measures based on this distribution rarely remain stationary over time, so that in studying the poverty structure over a period of time, one essentially encounters a time-dependent model that may be analyzed in a parametric or nonparametric manner. In this context, the change point problem is very relevant, and the related methodology is considered in a systematic manner.