Martin Ravallion - Poverty lines in theory and practice
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A poverty line helps focus the attention of governments and civil society on the living conditions of the poor. This paper offers a critical overview of alternative approaches to setting poverty lines. In reviewing the methods found in practice, the paper tries to throw light on, and go some way toward resolving, ongoing debates about poverty measurement, emphasizing those debates which would appear to have greatest bearing on policy discussions.
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The Living Standards Measurement Study (LSMS) was established by the World Bank in 1980 to explore ways of improving the type and quality of household data collected by statistical offices in developing countries. Its goal is to foster increased use of household data as a basis for policy decisionmaking. Specifically, the LSMS is working to develop new methods to monitor progress in raising levels of living, to identify the consequences for households of past and proposed government policies, and to improve communications between survey statisticians, analysts, and policymakers.
The LSMS Working Paper series was started to disseminate intermediate products from the LSMS. Publications in the series include critical surveys covering different aspects of the LSMS data collection program and reports on improved methodologies for using Living Standards Survey (LSS) data. More recent publications recommend specific survey, questionnaire, and data processing designs and demonstrate the breadth of policy analysis that can be carried out using LSS data.
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Poverty Lines in Theory and Practice
Martin Ravallion
LSMS Working Paper Number 133
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Copyright 1998 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A.
All rights reserved Manufactured in the United States of America First printing July 1998
To present the results of the Living Standards Measurement Study with the least possible delay, the typescript of this paper has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use.
The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
ISBN: 0-8213-4226-6 ISSN: 0253-4517
Martin Ravallion is lead economist in the Development Research Group of the World Bank's Development Economics Department.
Library of Congress Cataloging-in-Publication Data
Ravallion, Martin. Poverty lines in theory and practice / Martin Ravallion. p. cm. (LSMS working paper; no. 133) Includes bibliographical references (p.). ISBN 0-8213-4226-6 1. PovertyEconomic models. 2. PovertyStatistical methods. I. Title. II. Series. HC79.P6R38 1998 339.4'6'021dc21 98-4023 CIP
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