On the Estimation of Lower and Upper Bounds of Poverty Line: An Illustration with Indian Data

This paper introduces an iterative methodology for the estimation of lower and upper bounds of poverty line. A poverty index based on the concept of fuzzy poverty line has also been introduced. Empirical illustrations are provided with Indian data for 2004–2005 and 2009–2010. It has been observed that for most of the states of India the government estimates of the poverty lines lie in between these two bounds. Poverty rates have been found to decline regardless whether lower or upper bounds of poverty lines is considered. Fuzzy poverty index has also declined.