Poverty comparisons with common relative poverty lines

Tahsin Mehdi

    Research output: Contribution to journalArticlepeer-review


    Relative poverty lines are increasingly being used in poverty comparison studies. Existing methods assume that the distributions being compared are distinct with independent relative poverty lines. However, this practice may be problematic when comparing two subgroups of a population. We follow up on a recent proposal for the usage of common relative poverty lines in such cases, and develop a test for comparing poverty between subgroups of a single population, using inequality restrictions. Monte Carlo experiments are conducted in order to examine the size and power of our proposed test. We illustrate our procedure using some U.S. household income data.
    Original languageEnglish
    Pages (from-to)2029-2036
    JournalCommunications in Statistics - Theory and Methods
    Issue number4
    Early online date22 Mar 2016
    Publication statusPublished - 16 Feb 2017


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