This paper develops a methodology to measure the impact of price changes on poverty measured by an entire class of additive separable poverty measures. This impact is captured by means of price elasticity of poverty. The total effect of changes in price on poverty is explained in terms of two...

Drawing on data from 15 African countries, simulation models suggest that to reduce the poverty headcount ratio by increasing incomes among poor households, cash transfers would have to be sizeable - in the range of 2-8% of GDP. Even then, an increase in income, by itself, would not suffice to...