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Conciliating Absolute and Relative Poverty: Income Poverty Measurement Beyond Sen’s Model

Author

Listed:
  • B. Decerf

    (Department of Economics, University of Namur)

Abstract
The properties of poverty measures based on absolute poverty lines are well-known. Their prop- erties have been extensively studied in the model proposed by Sen (1976). In contrast, the properties of relativist poverty measures – measures based on non-absolute poverty lines – have never been rigorously studied. This is not merely a theoretical issue: relativist measures do provide highly de- batable poverty comparisons. This becomes increasingly problematic as relativist poverty measures are more and more used by policy makers. This paper proposes an extension of Sen’s model designed for the study of relativist poverty measures. Several results show that classical properties have dif- ferent implications in the extended model and in Sen’s model. Finally, the paper characterizes an index specifically designed for non-absolute poverty lines (Decerf, 2015). This result provides the first characterization of a relativist poverty measure.

Suggested Citation

  • B. Decerf, 2017. "Conciliating Absolute and Relative Poverty: Income Poverty Measurement Beyond Sen’s Model," Working Papers 1701, University of Namur, Department of Economics.
    • Handle: RePEc:nam:wpaper:1701
    as

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    File URL: https://www.unamur.be/en/eco/eeco/cred/working-papers-files/working-papers-2017/1701
    File Function: First version, 2017
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    Citations

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    Cited by:

    1. Decerf, Benoit, 2017. "Why not consider that being absolutely poor is worse than being only relatively poor?," Journal of Public Economics, Elsevier, vol. 152(C), pages 79-92.
    2. Ndubano Mafale & Dismas Ntirampeba & Jacob Ong’ala, 2021. "Multidimensional Poverty Modeling for Namibia Using the Beta Distribution," International Journal of Statistics and Probability, Canadian Center of Science and Education, vol. 10(6), pages 1-47, December.
    3. Benoit Decerf & Mery Ferrando, 2020. "Income Poverty has been Halved in the Developing World, even when Accounting for Relative Poverty," Working Papers 546, ECINEQ, Society for the Study of Economic Inequality.

    More about this item

    Keywords

    Income Poverty Measurement; Poverty Line; Relative Poverty; Absolute poverty; Additive Indices;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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