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 Inter-country Comparisons of Poverty Based on a Capability Approach: An Empirical Exercise
average expenditure of the reference quintile is scaled up linearly. The resulting scaled-up expenditure suffices to make a scaled-up bundle of characteristics in the assumed lower contour of the adequacy set, R1 , just affordable. This scaled-up expenditure level is defined as the povert...
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average expenditure of the reference quintile is scaled up linearly. The resulting scaled-up expenditure suffices to make a scaled-up bundle of characteristics in the assumed lower contour of the adequacy set, R1 , just affordable. This scaled-up expenditure level is defined as the poverty line. If the equiproportionality assumption is correct and the true lower contour of the adequacy set is that which was assumed (i.e. Q1 ), then R1 is indeed on the lower contour of the adequacy set, and our
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper27.pdf#page=8
www.undp-povertycentre.org/pub/IPCWorkingPaper27.pdf#page=8
6 International Poverty Centre Working Paper nº 27 be thought appropriate to make allowance <span class="highlight">for</span> adequate amounts of other commodity characteristics as well (e.g. taste). Since different commodity bundles contain these characteristics in different proportions, substitution between them may be possible, giving rise to a smooth lower <span class="highlight">contour</span> of the adequacy set (see Figure 2). <span class="highlight">For</span> example, it is conceivable that a lower level of food energy intake may suffice <span class="highlight">for</span> nutritional adequacy if fat, protein
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http://www.undp-povertycentre.org/pub/IPCWorkingPaper27.pdf#page=9
www.undp-povertycentre.org/pub/IPCWorkingPaper27.pdf#page=9
average expenditure of the reference quintile is scaled up linearly. The resulting scaled-up expenditure suffices to make a scaled-up bundle of characteristics in the assumed lower <span class="highlight">contour</span> of the adequacy set, R1 , just affordable. This scaled-up expenditure level is defined as the poverty <span class="highlight">line</span>. If the equiproportionality assumption is correct and the true lower <span class="highlight">contour</span> of the adequacy set is that which was assumed (i.e. Q1 ), then R1 is indeed on the lower <span class="highlight">contour</span> of the adequacy set, and our
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