THE RICH AND THE POOR: THE CONSTRUCTION OF AN AFFLUENCE LINE FROM THE POVERTY LINE

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Abstract

ABSTRACT

The paper proposes a simple methodology to estimate an affluence line that depends on the knowledge of the income distribution and the poverty line for a given population. The idea that poverty is morally unacceptable and can be eradicated through redistribution of wealth provides the grounds for the methodology. The line is defined as the value that delimitates the aggregated income required to eradicate poverty by the way of transfers from the rich to the poor. I estimate an affluence line using Brazilian 1999 National Household Survey data and briefly discuss the results.

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