ECO 2117 Lecture 10: feb 29 2016 lecture notes
20 Aug 2016
School
Department
Course
Professor
Document Summary
Some stylized typologies to analyze dualistic development (two sector economies) H = all poor individuals a = parameter. The value of a determines which poverty measure is calculated. Impact on measured poverty of a gain in income by a poor person increases in proportion to the distance of the person from the poverty line. Shows the severity of poverty and gives incentives to reduce poverty for the real poor people. Anonymity principle (the measure should not depend on who is already rich or poor) Population independence principle (the measure should not depend on weather the country has a large or small population) Monotonicity principle (if a poor person gets more income, the poverty measure should be no greater than it was before) Distributional sensitivity (after an income transfer from a poor person to a richer person a poverty measure should show an increase in poverty) P0, p1, and p2 satisfy properties 1, 2, and 3.
