Using the approach proposed in 2002 by the Technical Committee for the Measurement of Poverty (TCMP), CONEVAL produced a set of state-level poverty measures. The methodology consists of comparing a food basket that contains the minimum consumption requirements with a household’s average income. Data from the National Survey of Household Income and Expenditure (ENIGH) are used in the calculations. Currently, state poverty measures are calculated using the National Consumer Price Index (NCPI) published by BANXICO as a unique deflator. Hence, a major pending issue is correcting for regional differences in the cost of living. In this talk, we will describe a set of do-files that implement such a correction and will underline the main methodological and policy implications behind the correction.
