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Dynamic Measurement of Poverty: Modeling and Estimation

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Abstract

This study presents a model of income evolution from which dynamic versions of commonly used static poverty measures are derived. The dynamic indexes are calculated both for finite- and infinite-size economic systems. Probabilistic convergence results prove that the infinite-size system can be conveniently used to approximate the finite-size system in an effective way. Secondly, poverty indexes estimation based on micro-data are discussed under different sampling schemes and it is proved that they are strongly consistent. A hypothetical example is used to show the dynamic evolution of the poverty and the estimation methodologies.

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Correspondence to Guglielmo D’Amico.

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D’Amico, G., Regnault, P. Dynamic Measurement of Poverty: Modeling and Estimation. Sankhya B 80, 305–340 (2018). https://doi.org/10.1007/s13571-018-0153-6

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