ABSTRACT
This chapter proposes a factorial assessment of poverty that takes into account not only income, but other assets that have significant influence on the household consumption expenditure and which can be used by the authorities to identify the vulnerable group at risk of poverty. It describes a new reassessment model of households' income, which would result in the adjustment of poverty in Russia. Therefore, using only officially declared income for poverty measurement gives unreliable results. There is a lot of literature on the problems of measuring the level of welfare and inequality, identifying poverty, corporate social responsibility and the calculation of equivalence scales, and economies of scale as a result of living together in households. The chapter concludes that the main characteristic that could most significantly reflect the real financial situation of the household under the prevailing conditions should not be income, but the expenditure including the cost of food, produced and consumed within the household.
