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Estimation and Comparison of Poverty Line in Different States of India by Using Quality Adjusted Life Year (QALY)

Gurprit Grover and Radhika Magan

Objective: Poverty Line gives a snap-short about the nature of poverty. Our objective is to redefine poverty line as a cost of common utility value across a population. Based on this utility value, we estimate Quality Adjusted Life Year (QALY) for different states of India.

Methods: In this paper, we observe trend analysis on poverty ratios across different states in different time periods. We analyse the change in head count ratio from 2004- 05, 2009-10, 2011-12 across different states. Our cases are more concentrated on subdividing the states into two subgroups and then apply the model stated by Martin (2006). This leads to a new revised poverty model which serve as a framework for computation of QALY.

Results: Over the different time periods, the percentage of number of states are 10%, 36.67%, 86.67% of the total states having QALY value closer to 1in the time period 2004-05, 2009-10, 2011-12 respectively.

Conclusion: There is a huge variation in the QALY values in conjunction to the poverty estimates for different states. Few states whose poverty ratios are better over different time period has better QALY values i.e.closer to 1. The other states which are in worse condition having lower poverty ratios, has indeed QALY values close to 0.