How is food requirement estimated in poverty line?
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A common method used to estimate poverty in India is the income or consumption levels.if the income or consumption falls below a given minimum level ,then the family is said to be below the poverty line.
A minimum level of food requirement, footwear, clothing,fuel , medical requirement is used to determine subsistence.
The present formula for estimating poverty in India is based on a desired calorie requirement.2400 calories per person in rural areas and 2100 calories per person in urban areas.
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poverty line:-
The poverty line defines a threshold income. Households earning below this threshold are considered poor. Different countries have different methods of defining the threshold income depending on local socio-economic needs.
Consider
the food expenditure function shown in figure 3.6. Generally, b = f(y), where b is food purchases and y is
total expenditure. Following Ravallion (1998), let bF
be the cost of buying 2,100 Calories. Then an
upper poverty line might be given by
(3.13) F F f b = z − ( ) 1
which measures the income level at which the household would buy 2,100 Calories of food; this is
essentially the poverty line used in Vietnam. The non-food component is given by A
A lower poverty line might be given by F F
L z = b
which measures the expenditure level at which the household could just buy enough food, but would not
have any money left over to buy anything else; in Vietnam this is referred to as the food poverty line. But
even in this case, households will typically buy non-food items, as shown by C
suggests that one might want to compromise, and measure non-food at the mid-point between these two
extremes, giving B. In each case, the poverty line would be given by
z = bF + 0 (or A or B’)
from the above *GRAPH*
The non-food component of the poverty line, under the Cost of Basic Needs approach, may be
obtained as
A The cost of basic housing and services.
B Non-food consumption of a household with just enough income to buy 2,100 Calories of
food per capita per day along with other necessary goods and services.
C Non-food consumption of a household with just enough income to buy 2,100 Calories of
food per capita per day.
D All of the above.
The poverty line defines a threshold income. Households earning below this threshold are considered poor. Different countries have different methods of defining the threshold income depending on local socio-economic needs.
Consider
the food expenditure function shown in figure 3.6. Generally, b = f(y), where b is food purchases and y is
total expenditure. Following Ravallion (1998), let bF
be the cost of buying 2,100 Calories. Then an
upper poverty line might be given by
(3.13) F F f b = z − ( ) 1
which measures the income level at which the household would buy 2,100 Calories of food; this is
essentially the poverty line used in Vietnam. The non-food component is given by A
A lower poverty line might be given by F F
L z = b
which measures the expenditure level at which the household could just buy enough food, but would not
have any money left over to buy anything else; in Vietnam this is referred to as the food poverty line. But
even in this case, households will typically buy non-food items, as shown by C
suggests that one might want to compromise, and measure non-food at the mid-point between these two
extremes, giving B. In each case, the poverty line would be given by
z = bF + 0 (or A or B’)
from the above *GRAPH*
The non-food component of the poverty line, under the Cost of Basic Needs approach, may be
obtained as
A The cost of basic housing and services.
B Non-food consumption of a household with just enough income to buy 2,100 Calories of
food per capita per day along with other necessary goods and services.
C Non-food consumption of a household with just enough income to buy 2,100 Calories of
food per capita per day.
D All of the above.
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