Consumption Poverty

There are various methods to measure poverty. All have advantages and disadvantages, which occur in different country experiences over time. Consumption poverty has emerged in order to fix some of the shortcomings of income-based poverty measurement methods. Income and consumption levels of households are among the most common methods used to measure poverty. Having a consumption or income level that is below a certain minimum level necessary to cover basic needs is sufficient to be regarded as poor. Consumption and income levels of households are generally viewed as a more accurate measure of welfare and wellbeing in poverty analysis. However, there is an ongoing debate about which one presents a better understanding of the subject. Some argue that once sufficient and reliable information on consumption ...