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Economic Analysis: Theory and Practice
 

Living standard evaluation technique

Vol. 15, Iss. 9, SEPTEMBER 2016

PDF  Article PDF Version

Received: 24 March 2016

Received in revised form: 24 April 2016

Accepted: 16 June 2016

Available online: 29 September 2016

Subject Heading: ANALYSIS OF HUMAN CAPITAL

JEL Classification: E21, E64, D31, D63, I32, J17

Pages: 55-66

Zhmachinskii V.I. Volga State Academy of Water Transport, Nizhny Novgorod, Russian Federation
renden@mail.ru

Cherneva R.I. Volga State Academy of Water Transport, Nizhny Novgorod, Russian Federation
Cherneva@vgfvt-nn.ru

Importance Living standard evaluation is a priority in poverty reduction. Equivalence scales enable to compare living standards of families of various structure. One the ways to build equivalence scales is the expert method.
Objectives Poverty is one of the most acute social problems. It is an attribute of any economic system; difference is only in scale. Each State faces the problem of poverty assessment as the world community promulgates poverty alleviation as a responsibility of all countries without exception.
Methods At various stages of development, poverty is interpreted differently, therefore, evaluation methods also vary. It is impossible to apply accumulated global experience without taking into account the specifics of our country. Hence, it is necessary to systematize the existing theoretical and methodological approaches to poverty investigation, adapt them to specific conditions or offer new methods that are adequate to the present stage of development of the State.
Results Depending on the concept of poverty evaluation, there may be differences in findings leading to problems when developing measures of the national social policy. To assess living standards depending on the size and composition of families, equivalence scales can be used. To adapt the scales to domestic economy realities, we offer using the expert method of evaluation.
Conclusions The national social policy should focus on the general population. The offered technique for measuring the living standard may help face up to challenges.

Keywords: living standard, poverty, assessment, equivalence scale, expert method

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