What is the poverty elasticity?

Economics Poverty Questions



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What is the poverty elasticity?

The poverty elasticity refers to the responsiveness of poverty to changes in a particular economic variable, such as income or economic growth. It measures the percentage change in poverty resulting from a 1% change in the economic variable. A higher poverty elasticity indicates that poverty is more sensitive to changes in the economic variable, while a lower poverty elasticity suggests that poverty is less responsive to such changes.