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Quantity Constraints, Poverty Lines and Poverty Orderings

Abul Naga, R.H. (2004)

Journal of Economic Inequality. 2(1): 31-43.

Summary

By limiting the scope for substitution between commodities, other things equal quantity constraints raise the cost of living. Thus, rationed families have higher povery lines than unconstrained ones. This heterogeneity in both resources and poverty lines means that, in principle, bivariate dominance results are required to order distributions in terms of poverty.

Bivariate Stochastic Dominance; Poverty Lines; Poverty Orderings; Rationing.