Estimation of Absolute Poverty Line Based on Food Poverty Line using Mathematical Programming: A Case Study of Urban Areas in Mazandaran Province

In this research, the absolute poverty line based on the food poverty line is estimated using mathematical programming approach concerning urban area prices during February 2015. We first have determined a basic food basket including 76 common and important food items. Second, we have identified the basic human nutrients needs for the survival. Then we have considered the amount of nutrients in each 100 grams of the 76 food items. After that, we have collected the prices of each 100 grams of the food items using a categorized sampling covering urban areas of Mazandaran province. Mathematical Programme is constructed using the total cost function as the target function along with constraints of calorie and eight nutrients needs. The model has been solved by Simplex method and, the food poverty line is estimated. Then, using the Orshansky method the absolute poverty line is calculated. The results show that the food poverty line and the absolute poverty line for a household with four people in Mazandaran urban areas during February 2015 were about 311,000 and 1,305,000 Tomans(10 Rials), respectively.