Absolute Poverty Lines

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Private consumption capabilities form only one facet of comprehensive living standards assessments, but they are an important facet whose measurement should be done well. Measurement is complex due to a multitude of methodological choices, which often interact with imperfect data and a desire for comparability through time. This chapter outlines ideas underpinning these choices with particular attention to the tensions between consistency and specificity. It also highlights a series of limitations associated with typical cost of basic needs approaches. Finally, it reaffirms that a ‘sensibly eclectic’ approach, employing multiple methods, is the best available mode for addressing these limitations. A first fundamental choice is whether to estimate an absolute poverty line at all. Consumption-based poverty metrics provide only a partial view into the welfare of individuals or households, which may or may not accord with other important facets of welfare.
Original languageEnglish
Title of host publicationMeasuring Poverty and Wellbeing in Developing Countries
EditorsChanning Arndt, Finn Tarp
PublisherOxford University Press
Publication date2017
Pages10-23
Chapter2
ISBN (Print)9780198744801
DOIs
Publication statusPublished - 2017

    Research areas

  • Faculty of Social Sciences - poverty measurement, poverty line estimation, utility consistency, cost of basic needs, consumption

ID: 146212079