Average Poverty Gap Calculator

Formula

To calculate the Average Poverty Gap ($APG$):

\[ APG = \frac{TPG}{N} \]

Where:

$APG$ is the average poverty gap per individual
$TPG$ is the total poverty gap
$N$ is the number of poor individuals

What is the Average Poverty Gap?

The average poverty gap is a measure used to quantify the average shortfall of the total population from the poverty line. It provides an indication of the depth of poverty by showing how far, on average, the poor are from the poverty line. This metric is crucial for understanding the intensity of poverty and helps in designing policies aimed at poverty alleviation.

Example Calculation 1

Let's assume the following values:

Total Poverty Gap ($TPG$) = $100,000
Number of Poor Individuals ($N$) = 500

Using the formula:

\[ APG = \frac{100000}{500} = 200 $/individual \]

The average poverty gap is $200 per individual.

Example Calculation 2

Let's assume the following values:

Total Poverty Gap ($TPG$) = $250,000
Number of Poor Individuals ($N$) = 1000

Using the formula:

\[ APG = \frac{250000}{1000} = 250 $/individual \]

The average poverty gap is $250 per individual.