ON THE MEASUREMENT OF POVERTY

This paper examines three basic issues in the measurement of poverty: the choice of poverty line, the index of poverty, and the relation between poverty and inequality. The general theme is that th ere is a diversity of judgments which enter the measurement of povert y and it is necessary to recognize these explicitly in the procedures adopted. It is argued that dominance conditions provide tools which are both powerful and easy to apply empirically. Examples are given f or the United States. Copyright 1987 by The Econometric Society.

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