A model of constructing the poverty line

This paper proposes a model which defines the poverty line as that level of expenditure at which all caloric and nutrient shortfalls are eliminated, where requirements with respect to these are tailored to the age-sex-occupation characteristics of each household. The methodology avoids all the allegations of subjectivity and conceptual circularity levelled against the traditional methods. An application of the model to the NSS data for Indian Punjab demonstrates the computational simplicity and easy identifiability of the poverty line.