Estimating utility-consistent poverty lines
The “Cost of Basic Needs” (CBN) approach to drawing consumption-based poverty lines is widely applied and lays credible claim to being the best practice for estimating poverty measures. Unfortunately, a growing mass of evidence indicates that poverty estimates obtained under the CBN approach are oft...
| Main Authors: | , |
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| Format: | Brief |
| Language: | Inglés |
| Published: |
International Food Policy Research Institute
2005
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/160617 |
| Summary: | The “Cost of Basic Needs” (CBN) approach to drawing consumption-based poverty lines is widely applied and lays credible claim to being the best practice for estimating poverty measures. Unfortunately, a growing mass of evidence indicates that poverty estimates obtained under the CBN approach are often demonstrably utility inconsistent. Here, we introduce an information theoretic approach for estimating utility-consistent poverty lines. An example of the approach is provided for the case of Mozambique. The approach represents a powerful addition to the poverty analyst’s tool kit and enhances the attractiveness of the CBN approach for practical poverty measurement problems. |
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