“THE OPPOSITE OF POVERTY IS NOT WEALTH; THE OPPOSITE OF POVERTY IS ENOUGH.” — DR. WESS STAFFORD, PRESIDENT EMERITUS OF COMPASSION INTERNATIONAL
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DOI:
https://doi.org/10.53555/ms.v12i2.2583Keywords:
Multidimensional Poverty Line, Almost Ideal Demand System, Stone-Geary Utility Function, Linear Expenditure System, Separability of PreferenceAbstract
Comprehending the complex nature of poverty is essential for identifying the underlying factors and formulating effective interventions to mitigate its impact, fostering social equity and justice. This study endeavors to ascertain the total poverty line for four Indian states, namely Delhi, Kerala, Assam, and Bihar, by adopting a multidimensional approach that acknowledges the various dimensions of poverty, such as health, education, and social welfare, rather than solely income. The estimates will be derived from data pulled from the 68th round of the National Sample Survey Organization (NSSO), which are subjected to analysis, using the Linear Expenditure System (LES) as the estimation technique. The findings of the study have the potential to influence policy making in areas such as price and subsidy policies, social welfare, and healthcare standards, as they are based on the minimum living cost estimates. The study will employ the Stone-Geary utility function and assumes preferences separability, indicating that households allocate their resources autonomously among various goods and services. The use of a multidimensional approach lends the study a comprehensive perspective on poverty in the selected Indian states, which also examines near poverty households to inform policymaking that targets poverty reduction considering different price and expenditure elasticities.
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