Long run trails of poverty, 1925–2010

• DOI: 10.1007/s00181-020-01960-x
• Publication Date: 2020-10-29T19:03:26Z
• Authors: Michail Moatsos
• Keywords: Extreme poverty

Abstract What use has a poverty line when we do not know what it actually allows for? I exploit this weaknesses of the dollar-a-day methodology to motivate relatively more consistent alternative in global measurement. Poverty lines targeting well-defined welfare levels are constructed as consumption baskets, following recommendation 15 World Bank Commission on Global which promotes cost basic needs approach Those baskets priced locally and separately for each year, account nutrition, heating, housing, health, education other expenses. This transparent method is here applied long run measurement group eight countries. A second contribution error accounting using Monte Carlo technique micro-simulations. with 5 “total error” accounting, published recent report. Thus, statistical analysis becomes possible. The evolution profile five key western countries along three from Africa, seen broader perspective, comparative analysis. Among small countries, Netherlands appear be champions fighting extreme absolute poverty, all producing zero rates since 1987. An important caveat interpreting these results sub-optimal distributional data estimates, order keep quality underlying comparable throughout estimation period.