Statistical Model for Poverty Index

S. S. Singh¹ , S. S. Singh² , S. P. Singh³

Section:Research Paper, Product Type: Isroset-Journal
Vol.5 , Issue.6 , pp.75-80, Dec-2018

CrossRef-DOI:   https://doi.org/10.26438/ijsrmss/v5i6.7580

Online published on Dec 31, 2018

Copyright © S. S. Singh, S. S. Singh, S. P. Singh . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
The incidence of poverty measured in Poverty Gap (PG) introduced by Foster-Greer-Thorbecke (FGT) is adopted as poverty indicator and the Lorenz curve and Gini-concentration co-efficient were used to explain the income inequality of households in the selected village. A village, called Thanga Karang comprising of 257 households, is considered as selected village. Household survey was conducted to collect the data related to poverty. A statistical analysis of PG is carried out and fitted to the beta distribution with parameters α and β by method of moments and the method of maximum likelihood. The statistically significant values of α and β are respectively α ̂= 0.2989 and β ̂= 3.4722 by method of moments; α ̂= 1.459 and β ̂= 3.001 by method of maximum likelihood. Therefore the PG, an index of poverty is best fit to the assumed model (i.e. Beta distribution). The Gini-concentration co-efficient is found to be 0.5253. It suggests that income inequality among the household is observed in 52.53 percentages.

Key-Words / Index Term :
Poverty, Head Count Ratio, Poverty Gap, Lorenz curve and Gini-concentration co-efficient

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