The elimination of absolute poverty: approaches to monetary valuation

This paper presents two methods of evaluating the goal of eliminating absolute poverty in money terms. These techniques are adapted from environmental economics, where environmental intangibles are assigned money values. The first method measures the money value of absolute poverty through the demand for urban employment which is manifested in the process of rural-urban migration. In the second method, the demand for eliminating absolute poverty is derived through the application of a game theoretic model. The applicability and relevance of these methods are illustrated by means of simple examples.