Sa aceno, Chia a
A icle — Published Ve sion
Concep ual and me hodological issues in de ining and
measu ing absolu e po e y
Ri is a I aliana di Economia Demog a ia e S a is ica
P o ided in Coope a ion wi h:
WZB Be lin Social Science Cen e
Sugges ed Ci a ion: Sa aceno, Chia a (2024) : Concep ual and me hodological issues in de ining and
measu ing absolu e po e y, Ri is a I aliana di Economia Demog a ia e S a is ica, ISSN 0035-6832,
Socie à I aliana di Economia Demog a ia e S a is ica, Fi enze, Vol. 78, Iss. 4, pp. 9-20,
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Ri is a I aliana di Economia Demog a ia e S a is ica Volume LXXVIII n.4 O ob e-Dicemb e 2024
CONCEPTUAL AND METHODOLOGICAL ISSUES IN DEFINING
AND MEASURING ABSOLUTE POVERTY
Chia a Sa aceno
Abs ac . The no ion o absolu e po e y ecalls ha o basic needs, which, howe e , is a
om ha ing a consensual meaning. The au ho i s discusses wo main con as ing
de ini ions o basic needs - one based on an idea o pu e subsis ence, he o he based on
human igh s and he capabili y app oach. The au ho hen ou lines he concep ual and
me hodological issues in ol ed in in a- and c oss coun y as well as o e ime compa ison.
In he inal pa ag aph, he au ho sugges s ha in o de o o e come he limi a ions o any
po e y measu e ha igno es in a- and c oss-coun y di e ences in access o human and
social igh s and in he a ailabili y o common goods, he au ho sugges s ha su ey-based
da a on income o consump ion should be in eg a ed wi h da a on selec ed unc ionings a he
indi idual and household le el (e.g., educa ion, heal h, housing), which in u n should be
con ex ualized based on he na ional and local a ailabili y and accessibili y o public goods
ha a e de ined as essen ial o suppo ing hose unc ionings.
1. In oduc ion
Absolu e, o ex eme, po e y and how o measu e i un il ecen ly ha e been
conside ed an issue conce ning exclusi ely de eloping coun ies. Wi hin he
de eloped, pa icula ly Wes e n coun ies he ocus has been a he on ela i e
po e y, al hough wi h he impo an excep ion o he Uni ed S a es. This choice is
based on he idea ha , in hese coun ies, ex eme lack o means o subsis ence had
been la gely o e come a leas since he pos -Wo ld Wa II yea s, due o he
combina ion o economic de elopmen and wel a e s a e a angemen s.
Fu he mo e, as no iced by Blank (2008), who c i icized he US app oach on his
g ound, absolu e po e y lines ypically lag behind he a e age li ing condi ions in
apidly g owing economies, an a gumen ha is becoming impo an also a leas in
some o he de eloping coun ies. The e e ence poin o assessing po e y om a
ela i e pe spec i e, he e o e, is no pu e subsis ence bu he a e age le el o li ing.
Following Townsend (1962, 1979), ela i e po e y conce ns he inabili y o
adequa ely pa icipa e in he socie y one li es in o lack o adequa e esou ces. The
EU indica o o “a isk o po e y” (AROP) is also based on he ela i e po e y
concep .
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10 Volume LXXVIII n.4 O ob e-Dicemb e 2024
In ecen yea s, howe e , some dissa is ac ion wi h his concep has eme ged, o
di e en easons. One conce ns i s compa abili y when coun ies wi h g ea
di e ences in le el o li ing a e in ol ed. This is pa icula ly ue when ela i e
po e y is exp essed, as in he EU indica o , in e ms o pe cen age (50% o 60%) o
mean o median na ional income. A po e y line se a 50% o 60% o mean o
median na ional income, in ac , does no always indica e a simila , o compa able,
si ua ion ac oss coun ies and i isks ep esen ing as non-poo indi iduals and
households in one coun y who would be se e ely poo in ano he . In o de o
o e come his pa adox and adequa ely assess and compa e le els o po e y, a
common s anda d mus be iden i ied and i s alue ansla ed in PPS, as sugges ed by
A kinson (1998, see also A kinson e al. 2002). Two o he easons o he pa ial
dissa is ac ion wi h he concep and measu emen o ela i e po e y conce n ins ead
i s e icacy in ac ually de ec ing and measu ing po e y. In addi ion o being e y
sensi i e o he economic conjunc u e (see e.g. Jenkins e al. 2013), i seems a he a
measu e o inequali y han o s aigh o wa d po e y.
Because o his dissa is ac ion, he e has been an e o o in eg a e he
measu emen o ela i e po e y wi h o he indica o s. A he EU le el, Eu os a has
de eloped a mul idimensional indica o o a isk o po e y o social exclusion
(AROPE) which, alongside ela i e income po e y, includes li ing in a low wo k
in ensi y household and su e ing se e e ma e ial and social dep i a ion. This las
sub-indica o may be unde s ood as a, pa ial, indica o o absolu e po e y in so a
i is based on a numbe o goods and consump ions, lack o access o a numbe o
which (7 ou o 13) is de ined as se e e dep i a ion. Fu he mo e, wi h he
Measu ing and Moni o ing Absolu e Po e y (ABSPO) p ojec , he Eu opean
Commission and Eu os a ha e assessed no only he easibili y, bu he oppo uni y
o in eg a e he p esen indica o s and ways o measu ing po e y, wi h an absolu e
mone a y po e y measu e ha ep esen s cons an o compa able pu chasing powe
o e commodi ies ac oss coun ies and ime pe iods (Eu opean Commission, 2021).
A p esen , howe e , wi hin he EU membe coun ies only I aly since 1997 has an
o icial absolu e po e y measu e alongside he ela i e one.
2. Di e en app oaches o de ining absolu e po e y
The no ion o absolu e po e y ecalls ha o basic needs, which, howe e , is
a om ha ing a consensual meaning. Di e en unde s andings and de ini ions o
wha a e basic needs, and wha a e he goods needed o sa is y hem, may esul in
di e en de ini ions, and measu es, o absolu e po e y.
Wi hin he in e na ional deba e we, may ind wo main con as ing de ini ions o
basic needs. The mos consolida ed, bu also simple , de ini ion is based on a concep
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Ri is a I aliana di Economia Demog a ia e S a is ica 11
o pu e subsis ence. I de ines absolu e po e y as he lack o su icien esou ces o
secu e basic li e necessi ies, including amongs o he s sa e d inking wa e , ood, o
sani a ion. No su p isingly he e m absolu e po e y hus de ined is o en
in e changeable wi h ha o ex eme po e y. The mos ex eme use o his
de ini ion may be ound in he Wo ld Bank es ima es o he incidence o po e y
ac oss he wo ld, whe e he in e na ional ex eme po e y line is based on he lines
o he g oup o poo es coun ies. Acco ding o his de ini ion, a e absolu ely o
ex emely poo hose who li e wi h less o he equi alen in PPS o 2.15 dolla s a
day a 2017 p ices. In 2020, i s alue was € 1,39 a day in I aly, €1.41 in Po ugal,
7.49 yuan in China, 22.49 pesos in Mexico, 355.18 nai a in Nige ia. The amoun is
so low ha e en hose who a e a li le abo e i may expe ience di icul y in su i ing,
no o say li e decen ly and wi h digni y. I should be no ed, howe e , ha , ollowing
ecommenda ions by A kinson (2017), he Wo ld Bank is now also epo ing
es ima es based on a ‘socie al po e y line’ which combines absolu e and ela i e
elemen s (Wo ld Bank, 2018).
O he exe cises ha sha e a “su i al” concep o absolu e po e y a e he
In e na ional Food po e y line p oposed by Kakwani and Son (2006), he Minimum
Income o Heal hy Li ing p oposed by Mo is and o he s (2000), he in e na ional
po e y measu emen p oposed by Allen (2017) as concep ually and me hodological
supe io o ha o he Wo ld Bank. All hese a emp s s uggle wi h he issue o wha
is needed o “su i e” in a gi en ime and socie y, and no me ely li e “hand o
mou h”. In his pe spec i e, i is wo hwhile emembe ing ha he e y ini ia o o
he absolu e po e y app oach, Rown ee (1937), in cons uc ing he baske o
essen ial goods in 1930s UK, included also ea and obacco, which did no ha e any
nu i ional and heal hy-wise alue, bu we e psychologically and socially impo an
o English men a he ime. Rown ee o ce ully a gued ha “wo king people a e
jus as human as hose wi h mo e money. They canno li e ‘on a odde basis’. They
c a e o elaxa ion and ec ea ion jus as he es o us. Bu … hey can only ge
hese hings by going sho o some hing which is essen ial o physical i ness, and
so hey go sho .” (Rown ee 1937, pp. 126-127).
This opinion seems o be sha ed by all a emp s o de ine absolu e po e y lines
in he de eloped coun ies, in so a , as poin ed ou also in he inal ABSPO Repo ,
hey e e o benchma ks well abo e pu e subsis ence and include he accessibili y
o consump ions ha a e conside ed no only desi able, bu necessa y in a gi en
coun y.
The second main de ini ion o absolu e po e y is based on he Human igh s
and capabili ies app oaches (al hough he e is some di e ence be ween he wo). I
he e o e concei es absolu e po e y as he inabili y o each minimum accep able
le els in he undamen al igh s, o unc ionings (Sen, 1992; Ti a e i, 2008). These,
o cou se, include nu i ion, heal h (including also in an mo ali y p o ec ion),
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12 Volume LXXVIII n.4 O ob e-Dicemb e 2024
shel e , bu also educa ion, digni y and abo e all he possibili y o choose wha kind
o li e o ha e; hus, hey also include he deg ee o which human igh s a e g an ed
o on he con a y in inged upon. Se e e cons ain s in accessing educa ion, heal h
ca e, he egula labou ma ke , lack o p o ec ion om exploi a ion, high
inequali ies in he isk o in an mo ali y depending on one’s posi ion in he social
s a i ica ion and/o ( o ins ance in I aly wi h ega d o in an mo ali y; see De
Cu is and Simeoni, 2021) egion o esidence – all hese dimensions a e pe cei ed
as impo an as he economic condi ion in de e mining absolu e po e y and should
be aken accoun o when measu ing i . Towa ds his end, Alki e and Fos e (2011)
ha e de eloped a gene al measu e o mul idimensional po e y based on
dimensions included in he Human de elopmen Index. Thei app oach has been
implemen ed in he cons uc ion o he Mul idimensional Po e y Index (MPI) by
he Ox o d Po e y and Human De elopmen Ini ia i e (,) and he Uni ed Na ion
De elopmen P og amme o hei join Annual Repo on Global Po e y
(OPHI/UNPD 2023).
The B i ish New Economic Founda ion (NEF) Think ank, as well, p oposes a
igh s-based po e y line (RBPL) ha is based on he es ima ed ela ionship be ween
income and wellbeing indica o s, which e e o dis inc economic and social igh s.
The minimum h eshold o each indica o is uni e sal, bu he needed income o
achie e i a ies ac oss coun ies. In e es ingly, his p oposal sugges s ha he ole
o he a ailabili y o public goods in eaching and e en ually o e coming he po e y
h eshold in a gi en dimension should be aken accoun o , al hough wi hou clea
me hodological indica ions (New Economics Founda ion, 2010).
A kinson and Bou guignon (1999) ha e p oposed an in eg a ion be ween he
wo main de ini ions o absolu e po e y and unde lying basic needs, dis inguishing
be ween wo le els o capabili ies. The i s one e e s o subsis ence, he second o
social unc ionings. Acco ding o hese wo au ho s, howe e , he i s le el e e s
o absolu e po e y, he second o ela i e po e y. Sen, on he con a y, a gues ha
achie ing a minimum le el o social unc ionings is also necessa y in o de o ha e
a li e wi h digni y. The impossibili y o achie e his minimum le el, he e o e,
ep esen s a o m o absolu e po e y. Rela i i y, acco ding o Sen, conce ns only
he esou ces needed o adequa ely “ unc ion” and achie e a minimum accep able
le el o capabili ies, since hey a y depending on he con ex . “Being in good
heal h”, o “ha ing he necessa y minimum o educa ion” a e absolu e needs, wi h
he same s a us as, o ins ance, access o clean wa e , shel e , clo hing and ood.
Bu he de ini ion o h esholds and he ac ual means o achie e hem depend on
a ailable hygienic, heal h and school in as uc u es in a gi en con ex .”The
cha ac e is ic ea u e o ‘absolu eness’ is nei he cons ancy o e ime, no
in a iance be ween di e en socie ies, no concen a ion me ely on ood and
nu i ion. I is an app oach o judging a pe son’s dep i a ion in absolu e e ms a he
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Ri is a I aliana di Economia Demog a ia e S a is ica 13
han pu ely ela i e e ms is à is he le els enjoyed by o he s in he socie y” (Sen
1985, p. 673). He he e o e p oposes o de ine po e y in e ms o capabili y ailu e:
“ he ailu e o basic capabili ies o each ce ain minimally accep able le els”
(1992, p. 109).
Doyal and Gough (1991) wi h hei concep o “combined capabili ies” and
“in e media e needs” ha e u he wo ked wi h his idea o uni e sal basic needs o
make i mo e help ul o social policy. Combined capabili ies and in e media e
needs do no exis as an abs ac po en ial bu a e media ed by ma e ial esou ces.
In Doyal and Gough’s wo ds (1991, p. 157), hey a e “ he c ucial b idge be ween
uni e sal basic needs and socially ela i e sa is ie s”. The objec o e alua ion,
om he poin o iew o he assessmen o po e y, a e no needs, o capabili ies,
in he abs ac , bu he a ailabili y o and access o combined capabili ies o
in e media e needs (such as, o ins ance, adequa e nu i ional ood and wa e ,
adequa e p o ec i e housing, basic educa ion, ep oduc i e eedom).
The Uni ed Na ions in 1995 adop ed a de ini ion o absolu e po e y ha aims
a combining a su i al and a human igh s-based app oach, as well as an absolu e
and ela i e pe spec i e. In his de ini ion, absolu e po e y is cha ac e ised as
“se e e dep i a ion o basic human needs, including ood, sa e d inking wa e ,
sani a ion acili ies, heal h, shel e , educa ion and in o ma ion”. I is ela ed o
social se ices as well as income. I is pa o , bu dis inguished om, a b oade
no ion o “o e all po e y”. This la e e e s o he o al numbe o people li ing
in po e y in a coun y since hey lack a numbe o goods and/o oppo uni ies,
which ange om “lack o income and p oduc i e esou ces su icien o ensu e
sus ainable li elihood” o “inc eased mo bidi y and mo ali y om illness”, o
“social disc imina ion and exclusion”, “lack o pa icipa ion in decision-making
and in ci il, social and cul u al li e” (UN, 1995, pa . 19). I should be no ed ha he
“ a he ” himsel o he ela i e po e y app oach, Townsend, was in ol ed in
d a ing his de ini ion and in he ensuing campaign o a global social loo (Yea es
and Deacon, 2011).
The de ini ion o minimum li ing s anda d as adequa e pa icipa ion in socie y
p oposed by he ci ed EU sponso ed ABSPO p ojec also may be conside ed as
belonging o he human igh s and capabili y app oach. As he Repo unde lines,
in ac , i is consis en wi h he widesp ead iew o social pa icipa ion as a
summa y indica o o bo h indi idual well-being and he ul ilmen o one’s social
igh s (Kahneman e al., 1999; Lis e , 2004, 2014), as well as wi h a po e y
measu emen ha ocuses on indi iduals’ e ec i e eedom, agency and a ainable
socie al oles in explaining ma e ial and social dep i a ion (Sen, 1985, 1987;
Nussbaum, 2000). Fu he mo e, he concep o adequa e social pa icipa ion is
gene ic and lexible enough o he needs o in e na ional measu emen whe e
coun ies o di e en socio-economic backg ounds a e compa ed.
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14 Volume LXXVIII n.4 O ob e-Dicemb e 2024
The inal ABSPO Repo , howe e , admi s ha “The concep o adequa e social
pa icipa ion is somewha elusi e and needs o be made ope a ional h ough a se ies
o p ac ical measu emen choices. These should cla i y wha social pa icipa ion
means, how adequacy is de ined, and whe e he bounda ies o he ele an socie y
a e d awn in each pa icula con ex ” (Eu opean Commission 2021, p. 33). And i
adds: “The e is no ag eemen on hese opics in he heo e ical li e a u e: many
al e na i e concep s o social in eg a ion and pa icipa ion a e used simul aneously,
while he s udy o social adequacy and socie al bounda ies p o ides li le e ec i e
guidance o p ac ical measu emen ” (Ibidem).
3. Con ex speci ici y: concep ual and me hodological p oblems
As Ra allion poin ed ou some yea s ago (2016), we may obse e a g owing
compa ibili y be ween indica o s o absolu e and ela i e po e y p ecisely because
o he awa eness o he con ex speci ic quali y o absolu e po e y indica o s.
Con ex speci ici y, howe e , aises issues o c oss-coun y, in a-coun y and
c oss- ime compa abili y. The e may be a mo e o less impo an c oss-coun y
a iabili y bo h in he way “ undamen al needs” a e pe cei ed and in he means o
add ess hem e en wi hin a g oup o coun ies belonging o he same poli ical and
ins i u ional space. The di icul consensus on he lis o “dep i a ions” o he
AROPE indica o wi hin he EU and he (poli ical) impossibili y o ank hem
es i y bo h he di e en s a ing poin s and he di e se cul u es cha ac e izing hese
coun ies. E en calcula ing he cos o a compa able budge may be di icul , as i
eme ges in he in e es ing expe imen s o de eloping compa able “ e e ence
budge s” ac oss he EU (e.g., Can illon e al., 2019). In o de o calcula e hei
economic alue, de ac o, ei he a e age p ices a he na ional le el o he p ices in
one o mo e ci ies wi hin each coun y a e conside ed, igno ing wi hin coun y
a ia ion, which may be signi ican , pa icula ly conce ning housing, bu also
anspo a ion and, in he case o he u al/u ban di ide, e en ood.
Compa abili y ac oss ime mus also add ess he issue o a iabili y o how
“ undamen al needs” a e pe cei ed and amed as well as changes in he means o
add ess hem. The highe le el o li e acy and schooling equi ed o e ime in o de
o ob ain a job and mo e compe en ly in socie y, easie access o clean wa e , up o
ap wa e , changes in housing and communica ion echnologies - hese and o he
changes may push in absolu e po e y hose who canno access hem, no only
because hey canno each he new minimum adequa e le el o li ing, bu because
hese changes impac also on esou ces ha we e p e iously a ailable, educing o
elimina ing hem. Foun ains whe e one migh wash he /his laund y disappea .
Today his is happening also wi h public phone boxes. Rabbi s and chickens can no
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Ri is a I aliana di Economia Demog a ia e S a is ica 15
longe be aised domes ically unless one li es in a u al se ing. Spaces o
subsis ence ag icul u e diminish and sel -building one’s own house in open “ ee”
spaces impossible o illegal. Un il he mid-1960s, in I aly, owne ship o a laund y
machine and e ige a o was an indica o o a good economic s a us. Today, lack
o hem may be an indica o o se e e dep i a ion. Analogously, in he 1950s and
1960s, one migh li e decen ly wi hou a ( adi ional) phone. Today a cell phone
and in e ne access a e equi ed e en o applying o social assis ance when poo .
I should be no ed ha he only de eloped coun y ha uses exclusi ely he
absolu e po e y app oach, o i s o icial es ima es, he US, akes accoun o
a ia ion o e ime only wi h e e ence o in la ion, ha is o a ia ions in he cos
o a baske o goods ha has emained he same since 1960. In I aly, ins ead, also
he “baske o essen ial goods” has been e ised, i s in 2009 and hen again in
2022.
The concep o absolu e po e y unde lying he I alian measu emen me hod
(see he me hodological no e in ISTAT 2023 and he con ibu ions o his Special
Issues o he Ri is a I aliana di Economia Demog a ia e S a is ica), ha is how he
baske o goods has been indi idua ed, goes beyond ha o subsis ence o wo
easons. Fi s , i is mul idimensional and no d i en exclusi ely, as he US one, by
he ood componen . Second, i is ca e ully con ex ualized in ime and social space
wi h ega ds o he goods ha i conside s as necessa y. I may no , howe e , be
conside ed as based on he capabili ies o human igh s app oach. Expendi u e o
consump ion, in ac , al hough mo e adequa e han income o assess he le el o
wellbeing o dep i a ion, e lec s only he cos o goods and se ices, bu i igno es
he a iabili y in he a ailabili y o public and p i a e se ices as well as o o he
impo an con ex ual dimensions (e.g., en i onmen al quali y, secu i y, labou
ma ke oppo uni ies) ha impac on he quali y o li e o indi iduals and
households (B andolini, 2011; D’Alessio, 2018). Sca ci y o absence o ea ly child
educa ion and ca e se ices, o ull- ime schools, an ine icien heal h se ice,
lacking and/o ine icien public anspo a ion, lack o pa ks and public
playg ounds, pollu ion, li ing in insecu e neighbo hoods – all hese may
subs an ially educe he quali y o li e o he poo . Fu he mo e, hey may
di e en ia e he poo li ing unde hese ci cums ances wi h ega d o he capaci y
o sa is y hei basic needs no only om hose who a e be e o , bu also om
indi iduals and households who ha e he same economic condi ions, bu li e in
egions, municipali ies ha ha e a be e do a ion o public goods and in
neighbo hoods ha a e mo e secu e and no pollu ed.
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16 Volume LXXVIII n.4 O ob e-Dicemb e 2024
4. The un esol ed issue o how o ake accoun o he alue o public goods:
he need o a new app oach
Whe he and how o include he p esence o absence o public goods and hei
alue, no only in economic, bu also in wellbeing e ms, aises bo h compa a i e
and me hodological p oblems, when looking a he indi idual and household, no
socie al le el. I would equi e a de ailed analysis o na ional and sub-na ional
con ex s on he a ailabili y, dis ibu ion, ules o access o a ious kinds o public
goods on he one hand o whe he and o wha deg ee indi iduals and households
ha e ac ual access o hem depending on hei economic and social ci cums ances.
Fo ins ance, when i s ISTAT s a ed measu ing absolu e po e y, i did no
include expendi u e o heal h based on he ac ha , in p inciple, in I aly access o
heal h se ices is uni e sal. La e , howe e , i decided o include also his kind o
expenses no only because he Na ional Heal h se ices in oduced use s’ ees, bu
also because o an inc easing ecou se o p i a e heal h se ices. Ye , he ques ion
emains open on, i s , whe he , whe e, o wha deg ee his ecou se is dic a ed by
lacking o ine icien public se ices, second, wha happens when lack o public
se ices may no be compensa ed wi h ou -o -pocke expendi u e because o
insu icien economic means. “Heal h po e y” simply emains in isible. The same
happens wi h childca e se ices and ull day schools (which include also ca e e ia
se ices). These public goods no only a e no o e ed on a uni e sal basis bu a e
also qui e une enly dis ibu ed ac oss he na ional e i o y (ISTAT, 2020). Thus,
many households and hei child en do no ha e he “choice” o use hem. This
sca ci y, in u n, ends o s eng hen he well-known phenomenon o child en o dual
wo ke , well educa ed, middle-high class pa en s disp opo ionally using hese
se ices, e en when hey a e public, compa ed o single ea ne , low income and low
educa ed pa en s (Pa olini and Van Lancke , 2018). Simila easoning may be
applied o he a ailabili y o o he public goods, such as pa ks, anspo a ion,
accessible spo acili ies, public lib a ies and so o h
E en he indica o s p oposed by he ABSPO p ojec do no include he
a ailabili y o , and access o, public goods. Ye , as Lanau e al. (2020) obse e:
“Whe e uni e sal p o ision o basic se ices is lacking, cu en app oaches o
po e y measu emen may esul in unde es ima es, he eby aising compa abili y
and iden i ica ion issues”.
Baldini and o he s (2014) some yea s ago, sugges ed o ake accoun o he ole
o public goods in con ibu ing o he wellbeing o indi iduals and households by
impu ing hei es ima ed alue. Bu , e en i his solu ion we e heo e ically adequa e,
which is a leas con o e sial, i equi es be o ehand o know whe he he conside ed
public goods a e ac ually accessible and unde wha condi ions o he indi iduals and
households o whom ha alue is impu ed.
[ h ps://doi.o g/10.71014/sieds. 78i4.405 ]
