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Misclassification in an experimental poverty measure
Richard Bavier
Policy Analyst, Office of Management and Budget, Washington,
DC.
E-mail:
RBavier@omb.eop.gov
The views expressed in this article are the author’s personal views and do not represent the views of either the Office of Management and Budget or the current Administration.
A test of poverty misclassification using data from the Consumer Expenditure Survey (CE) does not support the National Research Council’s contention that medical needs must be treated differently from other needs in the measurement of poverty. This article derives an estimate, using CE data, as to how much misclassification would result from including something for medical needs in the poverty thresholds. Expenditures, rather than income, are used as the measure of economic resources in order to perform the misclassification tests.
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