Purchasing power parities and the Dollar-A-Day approach: An unstable relationship
- Journal Article
Rights / licenseCreative Commons Attribution 4.0 International
We show that the Dollar-A-Day methodology in global poverty measurement provides inconsistent International Poverty Line (iPL) solutions when a complete set of consistency criteria in the iPL definition is used. This article illustrates that minor fluctuations in purchasing power parity exchange rates can yield inconsistent iPLs. We find a rate of inconsistency of 46.1% and we conclude that this is a worrisome attribute of the method. Show more
Journal / seriesEconomics Letters
Pages / Article No.
SubjectGlobal Poverty; PPP; Error; Dollar-A-Day; Inconsistency; Monte Carlo
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