Strategic and general equilibrium models in poverty measurement studies

Bhattarai, Keshab

Abstract

Incentive compatibility in poverty alleviation game for the most efficient and just allocation of resources and maximisation of social welfare requires cooperation from both rich and poor households, governments and the global community. Noncooperation among them only deepens poverty with socially, economically and morally unacceptable magnitudes of malnutrition, hunger-disease-illness, tensions and conflicts, illiteracy and lack of education and skills. Scientific analyses and systematic implementation of poverty reduction initiatives require strategic and multihousehold general equilibrium models to compliment standard Booth-Rowntree, Sen-Atkinson and FGT or Jenkins-Lambert type absolute, relative, chronic or intensity measures of poverty in order to evaluate dynamic impacts actions taken for alleviation of poverty. Bad game results in poverty and good game results in prosperity. No analyses of poverty can be considered complete without evaluating income and substitution effects on welfare of these households based on the price mechanism and allocation of resources in the wider economy.

Citation

Bhattarai, K. (2010). Strategic and general equilibrium models in poverty measurement studies. Romanian journal of economic forecasting, 13(1), 137-150

• Journal Article Type: Article
• Publication Date: Jun 7, 2010
• Deposit Date: Feb 16, 2021
• Journal: Romanian Journal of Economic Forecasting
• Print ISSN: 1582-6163
• Publisher: Institute for Economic Forecasting
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Issue: 1
• Pages: 137-150
• Keywords: Poverty; Redistribution; Dynamic model
• Public URL: https://hull-repository.worktribe.com/output/3564539
• Publisher URL: http://www.ipe.ro/rjef/rjef1_10/rjef1_10_11.htm