The Concept and measurement of subsistence: A survey of the literature

Subsistence is a widely-used concept. But most of the time, its precise meaning is not property stated. This study attempts to provide an appropriate exposition of the concept by examining the manner in which it is used and the role it plays in different theoretical analyses and policy formulations. It has been shown that contrary to the conventional notion of a minimum standard of physical needs only, subsistence is an absolute minimum standard of physical and mental survival and productive efficiency. The lowest standard of social desirability is given by the needs of physical and mental survival. In addition to these, the standard of subsistence includes the needs of physical and mental efficiency for productive living in the society.The attainment of a certain minimum of physical, mental, and social magnitudes provides the standard of subsistence. Commodities or their characteristics are the needs of this standard. Income, by providing the command over these needs, affords an individual the capability to attain it. Hence income is used to characterize subsistence.Three different methods of subsistence determination have been identified. The most commonly used methods—the social and the scientific ones—are found to be arbitrary. The determination of subsistence from the analysis of the agents' declaration or behavior seems to be a better method. While the declaration or expenditure-based studies suffer from various limitations, studies based on the behavior of income earning offer a better direction.