Headcount index

The Head Count Index ( German about head count index ) is one of the World Bank in the development economics -used indicator of poverty. The headcount index indicates the percentage of a country's population that falls below a predetermined poverty line in terms of per capita consumption .

calculation

Be an income profile. Let the number of individuals considered poor in the income profile according to the poverty line be given by . The headcount index is then given by the proportion of the total population who are considered poor according to the poverty line ${\displaystyle Y=(y_{1},y_{2},\ldots y_{n})}$ ${\displaystyle Y}$ ${\displaystyle A}$ ${\displaystyle k_{A}(Y)}$ ${\displaystyle n}$

${\displaystyle H={\frac {k_{A}(Y)}{n}}}$.

Determination of the poverty line

This poverty line is adjusted at the state level on the basis of regional conditions; it is based on the necessary minimum for consumer spending, either according to the cost-of-basic-needs method based on a shopping cart or the food-energy method , which only covers the minimum calorie requirement according to the Food and Agriculture Organization or World Health Organization .

In contrast to the national poverty line, the World Bank defines the international poverty line as 1 US dollar per day ( adjusted for purchasing power ) per person. This poverty line is based on purchasing power parity from 1985, with USD 1 PPP having the same real purchasing power in every country.

Web links

Overview of definitions of poverty