engleski

A New Approach To Measure Poverty

In order to achieve a faster economic and social growth and be promptly involved in the European integrations it is necessary to dispose of correct data on the basis of which we could make correct policy. Although a lot of effort is made in the retrieval of the correct methodology of measuring poverty, a precise method by which we could make suitable strategic decisions has not been found as yet. The current measuring has countless weaknesses it has not managed yet to modify an absolute poverty threshold which has been used for thirty full years. The modified measure should reflect the occasions and circumstances for some time and in addition to the income, the property and other resources should be included in measuring. The researchers should be turned to the elaboration of “ hybrid measuring” as it was quoted in recent researches Patricia Ruggles. Only by combining absolute and subjective measuring we can obtain a complete picture and act promptly on the quoted occurrence. The presented social welfare function model importance reflects in its comparability and applicability. With this model application the country’ s social welfare function could not only be presented but also calculated numerically. International comparison within the model is also possible because the welfare level is expressed as a relative number. Expressing the independent variables in the model on the purchasing power parity basis, the international comparability becomes reality. Model applicability also exists in the economic policy creators’ opportunity to analyze and observe the consequences of the implemented state actions on individual or social wealth.

measuring poverty; approaches to measuring poverty; social welfare function

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