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Poverty Analysis. Poverty and Dominance. EAYSPol Series 035

This analytical tool illustrates how some simple poverty measures may be linked with dominance conditions between particular types of curves. This strongly resembles the dominance conditions already set out in the case of Lorenz curves1. In particular, dominance conditions will be derived for the headcount ratio and for the Foster-Greer-Thorbecke (FGT) measures showing that, under certain conditions, the poverty line specification is not necessary. This module also introduces the concept of the Three I’s of Poverty (TIP) curve. As a way to analyse poverty, this module is based on a different approach to poverty measurement. Nor does it recourse to a poverty line or to an exact poverty measure. Rather, it relies on dominance of appropriate curves.

This paper is part of the FAO Policy series: EASYPol-Resources for policy making (in agriculture, rural development and food security). To find other EASYPol series' resources, go to the Policy Support and Governance website>Resources and type "EASYPol" in the free text search.

Bellu, L.G., Liberati, P.