SPEED AND PACE OF REACTION OF JOINT POVERTY MEASURE FOR POPULATION TO CHANGES IN POVERTY LINE

The purpose of the paper is to analyze an influence of individual poverty measures and function types of income distribution on speed and pace of joint poverty measure P for population. The research was done for the case of log-normal income distribution and two measures of individual poverty: P(x,z) =1- x/z, P(x,z) = ln z/x for income 'x' and poverty line 'z'. It allowed for focusing on the following problems: the choice of poverty line level if the selection to the poor group is not dichotomous but a degree of poverty is based on individual poverty measure P(x,z); observed relations between values of joint poverty measure P for selected poverty line levels. In particular, the authoresses analyzed changes, relative changes, speed and pace of adjustment as well as curve elasticity of joint poverty measure for population to changes in poverty line.