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Should Poverty Measurement Discount Expenditure on Pan, Tobacco and Alcohol? The Indian case

Motkuri, Venkatanarayana and Mishra, Uday Shankar (2005): Should Poverty Measurement Discount Expenditure on Pan, Tobacco and Alcohol? The Indian case.

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Abstract

Poverty in Indian context has always generated contests and controversies regarding its concepts, measurement, levels and implications on several aspects of human welfare. This paper cautions on the validity of poverty assessment indicated by reported expenditure per capita at household level given the fact that this expenditure is an aggregate inclusive of expenditure on evil commodities. On this premise, the population share in Monthly Per Capita Expenditure classes is being verified, inclusive and exclusive of this component of expenditure on evil commodities to comment on welfare implications of the existing approach of poverty assessment.

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