2019-01-25T10:58:44+00:00

# calculate the HCR in 2000 and 2010

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# Economics and Finance

Finance

Consider two distributions of income for 4 persons living in a village where the poverty line, Z is 3.  In 2000, the income distribution is (1,2,3,4) and in 2010 it is (2,2,2,4). Assume that anyone making Z and below are defined as living in poverty.

a)  calculate the HCR in 2000 and 2010

.b)  calculate the Poverty Gap index in 2000 and 2010

.c)  explain your answers to a) and b) in the context of the desirable properties of the poverty measure and suggest a better alternative to measure poverty.

Economics

Consider two distributions of income for 4 persons living in a village where the poverty line, Z is 3.  In 2000, the income distribution is (1,2,3,4) and in 2010 it is (2,2,2,4). Assume that anyone making Z and below are defined as living in poverty.

a)  calculate the HCR in 2000 and 2010

.b)  calculate the Poverty Gap index in 2000 and 2010

.c)  explain your answers to a) and b) in the context of the desirable properties of the poverty measure and suggest a better alternative to measure poverty.

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