Global Income Poverty Measurement with Preference Heterogeneity

• Tác giả: Benoit Decerf
• Ngôn ngữ: eng
• Ký hiệu phân loại: 339.22 Distribution of aggregate personal income and wealth
• Thông tin xuất bản: World Bank, Washington, DC, 2021
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 297195
• Chủ đề: 1. ABSOLUTE POVERTY; 2. INCOME POVERTY; 3. POVERTY MEASUREMENT; 4. RELATIVE POVERTY; 5. WELFARE-CONSISTENCY

Tóm tắt

There is growing support for monitoring global poverty using a measure that accounts for both own and relative income. This paper shows how-in the context of heterogeneous preferences over these factors-the well-known conflict between fairness and welfare-consistency can be resolved, establishing the first preference-based foundation for both the established societal global poverty line and recently proposed hierarchical poverty indices. The paper reformulates one hierarchical index as a modified headcount ratio. Unlike all classic poverty indices, this index is necessarily reduced when an individual escapes poverty. The application highlights that the proposed index substantially changes the assessment of global poverty reduction.