It is simpler and more commonly used because it is simple to understand and measure. But it does not show how poor the poor are (All JH, 2005). P0=Np/N where P0 is the percentage of households considered poor, Np is the number of poor households and N is the sample size. The second measure is the poverty gap index (P1) which measures the extent to which families fall within the poverty line. poverty line (the poverty gap) as a percentage of the poverty line. The sum of these poverty gaps guarantees the lowest cost of eradicating poverty if transfers were perfectly targeted. But this measure shows no changes in inequality among poor families. The third measure is the squared poverty gap index (“poverty severity”) (P2), which represents the average of the squares of the poverty gaps relative to the poverty line (All JH, 2005). Other measures of poverty are the time taken to identify it, i.e. the measures it would take on average for a poor person to escape poverty, given a hypothesis on the rate of economic growth; can be obtained as the Watts index divided by the growth rate of income (or expenditure) of the poor (All JH,2005). 2.1.3 Road development in
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