The effect of equivalence scale and poverty line on poverty rate in Iran*

Document Type : Research Paper

Authors

1 Professor, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran

2 department of agricultural economics and development, university of tehran

3 Associate Professor, Faculty of Agricultural Economics and Development, University of Tehran, Karaj, Iran

Abstract

The aim of this paper is to evaluate the equivalence scales effect on poverty rate, reduction of equivalence scales impact on poverty; and contribution to poverty measurement literature. To that end, we apply household Income and expenditure data (2016), four equivalence scales and three poverty lines to measurement of poverty in Iran. The result indicates that equivalence scales and poverty lines have a significant effect on poverty rate. So that by applying diverse equivalence scales and poverty lines, poverty rate vary from .07% to 28%. Hence, applying appropriate equivalence scale and poverty line is an essential precondition for poverty measuring and policy making. It’s recommended to apply appropriate equivalence scales and poverty lines according to circumstances of each specific region of the country.

Keywords

Iranian Journal of Agricultural Economics and Development Research

Articles in Press, Accepted Manuscript
Available Online from 15 June 2021

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