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In: Economics

Consider giving one dollar to a poor person, keeping in mind that among a country’s poor...

Consider giving one dollar to a poor person, keeping in mind that among a country’s poor people, some have much lower incomes than others. Consider each of the aggregate poverty measures we discussed in the class and assume that per capita household income is the measure of individual-level well-being they summarize. For each measure, discuss how the impact on the measure would differ depending on whether the additional dollar were given to a person who is just barely poor (with income just below the poverty line) or to a person who is very poor: (v) the P2 measure.

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