On the Welfarist Rationale for Relative Poverty Lines
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World Bank, Washington, DC
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The theory and evidence supporting a
relativist approach to poverty measurement are critically
reviewed. Various sources of welfare interdependence are
identified, including the idea of "relative
deprivation" as well other (positive and negative)
welfare effects for poor people of belonging to a better-off
group. An economic model combines informal risk sharing
with the idea of a "positional good," and
conditions are derived in which the relative deprivation
effect dominates, implying a relative poverty measure. The
paper then reviews the problems encountered in testing for
welfare effects of relative deprivation and discusses the
implications of micro evidence from Malawi. The results are
consistent with the emphasis given to absolute level of
living in development policy discussions. However, relative
deprivation is still evident in the data from this poor but
unequal country, and it is likely to become a more important
factor as the country develops.
Palabras clave
ABSOLUTE POVERTY, ABSOLUTE POVERTY LINE, AGGREGATE POVERTY, AGRICULTURE, AVERAGE INCOME, BASIC NEEDS, CITIZENS, CONSUMER DEMAND, CONSUMPTION AGGREGATE, CONSUMPTION EXPENDITURE, CONSUMPTION GROWTH, COST FUNCTIONS, CROSS-COUNTRY COMPARISONS, DECOMPOSABLE POVERTY, DECOMPOSABLE POVERTY MEASURES, DEMAND FUNCTIONS, DEPENDENT VARIABLE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT POLICIES, DEVELOPMENT POLICY, ECONOMETRICS, ECONOMIC GROWTH, ECONOMIC INEQUALITY, ECONOMIC PERFORMANCE, ECONOMIC REVIEW, ECONOMIC STATUS, ECONOMIC STUDIES, ECONOMIC THEORIES, ECONOMICS, ELASTICITY, EMPIRICAL ANALYSIS, EMPIRICAL APPROACHES, EMPIRICAL EVIDENCE, EMPIRICAL RESULTS, EMPIRICAL STUDIES, EMPIRICAL WORK, EMPLOYMENT OPPORTUNITIES, EXPECTED VALUE, FOOD ITEMS, FUNCTIONAL FORMS, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD LEVEL, HOUSEHOLD MEMBERS, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSING, INCOME, INCOME DISTRIBUTION, INCOME EFFECT, INCOME ELASTICITY, INCOME GAINS, INCOME INEQUALITY, INCOME LEVEL, INCOME POVERTY, INCOMES, INCREASING FUNCTION, INDIFFERENCE CURVES, INDIVIDUAL WELFARE, INEQUALITY, INFORMAL INSURANCE, INSURANCE, LIVING STANDARDS, LOCAL COMMUNITIES, LOG INCOME, LOW INCOMES, MARGINAL PROPENSITY TO CONSUME, MEAN CONSUMPTION, MEAN INCOME, MEASUREMENT ERROR, MEASUREMENT ERRORS, MEASUREMENT OF POVERTY, MEASUREMENT PROBLEMS, MEASURING POVERTY, MORTALITY, NEGATIVE COEFFICIENT, NEGATIVE EXTERNALITIES, NEGATIVE EXTERNALITY, PACE OF URBANIZATION, POLICY DISCUSSIONS, POLICY MAKING, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POOR, POOR AREA, POOR AREAS, POOR COUNTRIES, POOR COUNTRY, POOR PEOPLE, POOR PEOPLES, POOR RURAL HOUSEHOLDS, POSITIVE EFFECT, POSITIVE EXTERNALITIES, POSITIVE EXTERNALITY, POVERTY ANALYSIS, POVERTY COMPARISONS, POVERTY GAP, POVERTY GAP INDEX, POVERTY INCREASES, POVERTY INDICES, POVERTY LINE, POVERTY LINES, POVERTY MEASURE, POVERTY MEASUREMENT, POVERTY MEASURES, POVERTY PROFILE, POVERTY RATE, POVERTY REDUCTION, PRIVATE TRANSFERS, PROGRESS, PROPORTIONAL INCREASE, PUBLIC ECONOMICS, PUBLIC GOOD, PUBLIC GOODS, PUBLIC KNOWLEDGE, PURCHASING POWER, QUALITY OF LIFE, REAL INCOME, RECIPROCITY, RELATIVE EARNINGS, RELATIVE INCOME, RELATIVE POVERTY, RELATIVE PRICES, RESPECT, RISK SHARING, RURAL, RURAL AREAS, RURAL ECONOMY, SOCIAL ASSISTANCE, SOCIAL CAPITAL, SOCIAL FACTORS, SOCIAL JUSTICE, SOCIAL SECURITY, SPILLOVER, URBAN AREAS, UTILITY FUNCTION, UTILITY VALUE, VILLAGE ECONOMIES, WAGES, WEALTH, WELFARE INDICATOR, WELFARE MEASURES, WESTERN EUROPE, WORKING CONDITIONS