Computational tools for poverty measurement and analysis

Gaurav Datt
fcnd discussion paper

This paper introduces some relatively straightforward computational tools for estimating poverty measures from the sort of data that are typically available from published sources. All that is required for using these tools is an elementary regression package. The methodology also easily lends itself to a number of poverty simulations, some of which are discussed. The paper addresses the central question: How do we construct poverty measures from grouped data on consumption and income? Two broad approaches can be identified: simple interpolation methods and methods based on parameterized Lorenz curves. The paper briefly describes the two approaches and discusses why the second may be considered preferable.