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<classification authority="sudocs">GA 1.13:GGD-95-64</classification>
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 <subject>Cost of living</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Price indexes</subject>
 <subject>Demographic data</subject>
 <subject>Income statistics</subject>
 <subject>Economic analysis</subject>
 <subject>Statistical methods</subject>
 <subject>Economic research</subject>
 <identifier>USDA Survey of Food Consumption</identifier>
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<titleInfo>
 <title>Poverty Measurement: Adjusting for Geographic Cost-of-Living Difference</title>
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<abstract>This report provides information on the statistical data requirements
that would be needed to construct a cost-of-living index that could be
used, at the federal level, to adjust for geographic differences in
living costs.  Concerns had been raised in Congress that current
measures do not recognize that residents of high-cost areas may need
higher incomes to meet their basic needs.  GAO (1) describes the
function of market baskets in determining a cost-of-living index,
including both a uniform national market basket and market baskets that
reflect regional differences in consumption; (2) identifies
methodologies that might be used to calculate a cost-of-living
adjustment, including methodologies that researchers and private
industry use for comparing costs by geographic areas; and (3) presents
expert opinions on the ability of these methodologies to adjust the
poverty measurements for geographic differences in cost of living.</abstract>
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 <topic>Cost of living</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Price indexes</topic>
 <topic>Demographic data</topic>
 <topic>Income statistics</topic>
 <topic>Economic analysis</topic>
 <topic>Statistical methods</topic>
 <topic>Economic research</topic>
 <topic>USDA Survey of Food Consumption</topic>
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