The author thanks Christopher Browne, Ke-Young Chu, Richard Hemming, and Dan Hewitt for useful suggestions. An earlier version of this paper was presented at the Fund seminar on poverty, held in December 1990; the paper is expected to be published as part of the proceedings of this seminar in the Occasional Paper series. The views expressed here are those of the author and do not necessarily reflect those of the International Monetary Fund.
See Ravi Kanbur, “Measurement and Alleviation of Poverty: With an Application to the Effects of Macroeconomic Adjustment,” Staff Papers, International Monetary Fund (Washington, D.C.), Vol. 34 (March 1987), pp. 60-85.
Crossover time T=[ln(z/yp)]/[ln(1+g)], where z is the poverty threshold income level, yp the mean income of the poor, and g is the annual per capita growth rate in real terms.