A social engineering model for poverty alleviation


Poverty, the quintessential denominator of a developing nation, has been traditionally defined against an arbitrary poverty line; individuals (or countries) below this line are deemed poor and those above it, not so! This has two pitfalls. First, absolute reliance on a single poverty line, based on basic food consumption, and not on total consumption distribution, is only a partial poverty index at best. Second, a single expense descriptor is an exogenous quantity that does not evolve from income-expenditure statistics. Using extensive income-expenditure statistics from India, here we show how a self-consistent endogenous poverty line can be derived from an agent-based stochastic model of market exchange, combining all expenditure modes (basic food, other food and non-food), whose parameters are probabilistically estimated using advanced Machine Learning tools. Our mathematical study establishes a consumption based poverty measure that combines labor, commodity, and asset market outcomes, delivering an excellent tool for economic policy formulation.

Publication DOI: https://doi.org/10.1038/s41467-020-20201-4
Divisions: College of Engineering & Physical Sciences
College of Engineering & Physical Sciences > Systems analytics research institute (SARI)
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Uncontrolled Keywords: Chemistry(all),Biochemistry, Genetics and Molecular Biology(all),Physics and Astronomy(all)
Publication ISSN: 2041-1723
Last Modified: 20 May 2024 07:36
Date Deposited: 09 Nov 2020 13:02
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Related URLs: https://www.nat ... 467-020-20201-4 (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2020-12-11
Accepted Date: 2020-11-05
Authors: Chattopadhyay, Amit (ORCID Profile 0000-0001-5499-6008)
Krishna Kumar, T
Rice, Iain



Version: Accepted Version

Access Restriction: Restricted to Repository staff only

License: Creative Commons Attribution


Version: Published Version

License: Creative Commons Attribution

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